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Transfer Credit Policy The Office of the University Registrar

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Finally, international (foreign currency) credit can also put upward pressure on the real exchange rate, as borrowers exchange foreign for domestic currency for the purchase of domestic goods or assets. With a fixed exchange rate (or within a currency area), real exchange rate appreciation can take the form of relatively rapid inflation. For a country with an independent currency, real exchange rate appreciation can result from either nominal appreciation or relatively rapid inflation. In this paper, the next section shows how international credit grew in selected European countries that were hard hit in the recent crisis, and then draws a parallel to the lead-up to the Asian financial...
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Transfer Credit Policy The Office of the University Registrar

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