The Breton Woods exchange rate mechanism can be thought of as a gold exchange standard

1- The Breton Woods exchange rate mechanism can be thought of as a gold exchange standard

2- When in a liquidity trap, it is difficult for a country to affect the exchange rate using monetary policy.

3- The classical dichotomy refers to a case where money demand and money supply should be analyzed separately

4- Under the assumption of super neutrality of money, fully anticipated inflation has no welfare cost

5-In the theory of optimum currency areas, the monetary efficiency gain refers to the advantage that individual member countries of a monetary union can no longer engage in competitive devaluations

6- In an open economy a reduction in the government deficit should be accompanied with an improvement of current account

7- Even an economy with limited financial participation, monetary policy may influence the real economy。

8-In Lucas misperception model, unanticipated monetary policy shocks have real effects due to asymmetrical information

9- More frequent switching from bonds to money will result in a higher opportunity cost of holding money and lower money management costs

10- If people think that interest rates are above normal levels, they will want to hold bonds in anticipation of a rise in bond prices。

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