Spain engage in expansive monetary policy

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Some countries like Spain engage in expansive monetary policy to stimulate the economy. What was the effect of this policy on the interest rate, the exchange rate and output? Because of this Spain's irresponsible monetary policy, Spain was in risk of not keeping the exchange rate inside the bands. How could the Spanish government use fiscal & monetary policies to avoid this from happening? Draw graphs to support your answers

Reference no: EM131164595

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