Explain what causes the nominal exchange rate to overshoot in the overshooting model (70%). Comment on the importance of

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answerhappygod
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Explain what causes the nominal exchange rate to overshoot in the overshooting model (70%). Comment on the importance of

Post by answerhappygod »

Explain what causes the nominal exchange rate to overshoot in
the overshooting model (70%). Comment on the importance of the
assumptions in generating overshooting behaviour. (30%)
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