Jimmy Erdmier

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At these times of early currency strength, some central banks choose to enter the foreign-currency exchange market to sell their own currency for the incoming foreign currency in order to prevent it from rising (and to prevent the adverse economic effects of its rise). If the central bank does this, it needs to do something with that newly acquired currency, which is to buy investment assets denominated in that foreign currency (most typically bonds)
A Template for Understanding Big Debt Crises
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