Get an AnswerWhy is it true that in a pure flexible exchange rate system, the foreign exchange market has no direct effects on the money supply? Does this mean that the foreign exchange market has no effect on monetary policy?Smart Writing ServicesOctober 25, 2017 7:43 amOctober 25, 2017Previous ArticleHow can a large balance of payments surplus contribute to a country’s inflation rate?Next ArticleWhat are the main benefits and costs of monetary union? What are the main criteria for the optimality of a currency area?
