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What Are the Costs of Fixing the Exchange Rate

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What are the costs of fixing the exchange rate?


Definitions:

Industrial Policy

Governmental initiatives aimed at improving the competitive stance and capabilities of domestic industries and encouraging economic development.

Economic Development

The process by which a nation improves the economic, political, and social well-being of its people.

Government

The organization or system through which a community or society is governed, often involving institutions and political mechanisms.

Less Developed

A term referring to countries with lower levels of industrialization, lower standard of living, and lower Human Development Index (HDI) scores.

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