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What Actions Must a Central Bank Take If It Is

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Essay

What actions must a central bank take if it is trying to maintain a pegged exchange rate,but there's downward pressure on the value of its currency.


Definitions:

Multiple Comparison Method

A statistical technique used to evaluate differences among multiple groups or conditions to determine if at least one of them significantly differs from the others.

Tukey Multiple Comparison Method

A statistical technique used to find the differences among group means in a situation where there are more than two groups.

Pairwise Means

The average values obtained from every possible pair of groups or treatments in a study, often used in post-hoc analysis following ANOVA.

Population Means

The average value of a particular characteristic in a population.

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