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2
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They don't know how much intervention will be required to keep the currency at a given level. It depends how much other market participants want to resist the move. If the central bank is relatively …
answered Nov 3 '16 by dm63
3
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Clearly the money markets are likely to freeze up in a crisis situation. They did exactly that in 2008. Specifically: A) people don't want to lend money unsecured to banks, so bank commercial paper …
answered Nov 26 '15 by dm63
1
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The traditional tool of central banks is the direct control of interest rates. The interest rate being controlled is usually the short dated interbank rate ( federal funds rate in the US). If, in …
answered Dec 1 '15 by dm63