Business, 08.04.2021 06:20 lovenahofer

Suppose that soon after Norway pegs to the euro, the Eurozone benefits from a favorable shift in the world demand for non-Norway Eurozone exports. What happens to the exchange rate of the Norwegian krone against non-euro currencies? How is Norway affected? How does the size of this effect depend on the volume of trade between Norway and the Eurozone economies?

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Suppose that soon after Norway pegs to the euro, the Eurozone benefits from a favorable shift in the...

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