Hi
I want some clarification on the topic "Reducing short term fluctuations" under the topic "exchange rate and balance of payments", Chapter 17, page 16.
How would 'selling gold and foreign reserves' & 'borrowing in the form of a foreign currency loan' increase the demand for domestic currency?
Some clarification would be very helpful!
Thanks and Regards,
Shyam
I want some clarification on the topic "Reducing short term fluctuations" under the topic "exchange rate and balance of payments", Chapter 17, page 16.
How would 'selling gold and foreign reserves' & 'borrowing in the form of a foreign currency loan' increase the demand for domestic currency?
Some clarification would be very helpful!
Thanks and Regards,
Shyam