Examlex
Country X frequently engages in trade flows with the U.S. (such as imports and exports). Country Y frequently engages in capital flows with the U.S. (such as financial investments). Everything else held constant, an increase in U.S. interest rates would affect the exchange rate of Country X's currency more than the exchange rate of Country Y's currency.
Central Bankers
Officials responsible for overseeing a country's monetary system and policy, including controlling the money supply and interest rates.
Active Approach
is a strategy in management or investing that involves taking specific actions to achieve a particular goal, as opposed to a passive or laissez-faire approach.
Natural Adjustments
Natural adjustments refer to the self-correcting mechanisms of markets or economies that respond to imbalances or disruptions without the need for external intervention.
Expansionary Gap
A situation where the actual output of an economy exceeds its potential output, typically characterized by increasing prices.
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