Read Chapters 14, 15, 16, 17, 18 of the Textbook, Money and Banking (Robert E. Wright, Vincenzo Quadrini)
After carefully reading all the available information within the readings above, prepare a two page (double-spaced) essay and answer the following questions:
1. Why the simultaneous targeting of the money supply and interest rates is sometimes impossible to achieve?
2. How do central banks intervene in foreign exchange markets?
3. What did the Bretton Woods Agreement do to the ability of foreign exchange rates to fluctuate freely?
Cite references to material that you use in preparing the essay.
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