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Why did the British authorities continue to defend the pound despite its overvaluation?
rafiki121
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Why did the British authorities continue to defend the pound despite its overvaluation?
Why did the British authorities continue to defend the pound despite its overvaluation?
Textbook
Macroeconomics
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3
rd
Authors:
Acemoglu, Laibson, List
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The British authorities thought the overvaluation was temporary and that British prices would fall relative to the prices of their trading partners, which would then lead to increased exports for the United Kingdom and a right shift of the demand curve for pounds.
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rafiki121
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Good timing,
thanks!
veronee_madison
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Just got PERFECT on my quiz
Ifekwunigwe
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Smart ... Thanks!
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