Question

Manipulation exchange rate regime definition

Answer 1

The exchange rate of an economy affects aggregate demand through its effect on exports and imports, andpolicy makers can exploit this connection. Exchange rates can bemanipulated so that they deviate from their natural rate. Many economists regard exchange rate manipulation as a type of monetary policy.

Answer 2

Answer:

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Currency manipulation is a policy used by governments and central banks of some of America's largest trading partners to artificially lower the value of their currency (in turn lowering the cost of their exports) to gain an unfair competitive advantage.