Q3. a. Exchange rate systems vary in the degree to which a country’s central bank control its currency’s exchange rate.

[answerhappygod]

Q3.
a. Exchange rate systems vary in the degree to which a
country’s central bank control its currency’s exchange rate. Many
countries allow their currency to float, yet periodically engage in
interventions to control the exchange rate. Explain why and how a
central bank intervene to control the currency exchange rate. Be
sure to explain the impact of such intervention on the economy
including interest rates, inflation, and balance of
trade.
b. In view of the current war in Ukraine, interpret
how the European central bank can use monetary policy to respond to
the impact of war on rising prices, employment, and economic
growth