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In some countries, the choice of monetary policy is the exchange rate: the country may choose to have a fixed exchange rate is a major international currency. Or in some kind of target. In this case, monetary policy is primarily concerned with the management of exchange rate determination, the small economy with a fixed exchange rate, such as Hong Kong, a constant currency with money dollar
financial policies related to the deal. Short-term interest rates to achieve the objectives of domestic policy. Economies, mainly made by this method.
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