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Q. Explain why the EMS countries decided to fix their exchange rates against the German DM?
Answer: In this manner the other EMS countries in effect imported the credibility of the German central bank in fighting inflation therefore discouraging the development of inflationary pressures at home.
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Q. Explain why the EMS countries decided to fix their exchange rates against the German DM? Answer: In this manner the other EMS countries in effect imported the credi
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