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Concept Version 5
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Exchange Rate Policy Choices

Developing Countries

Developing Countries

The developing countries, marked in light blue, may prefer a fixed or managed exchange rate to a floating exchange rate. This is because sudden depreciation in their currency value poses a significant threat to the stability of their economies.

Source

    Boundless vets and curates high-quality, openly licensed content from around the Internet. This particular resource used the following sources:

    "Industrialized countries 2007."
    http://commons.wikimedia.org/wiki/File:Industrialized_countries_2007.png Wikimedia GNU FDL.

Related Terms

  • fixed exchange rate
  • floating exchange rate
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