assume that policymakers fail to stabilise the economy. This results in very high inflation and a steep decline in investor confidence, especially in financial markets. Use a suitable economic model to show what is likely to happen to capital flows and associated economic variables. Diagrams are needed to illustrate your answer.

Microeconomics: Private and Public Choice (MindTap Course List)
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ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
ChapterST5: The Great Recession Of 2008-2009: Causes And Response
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assume that policymakers fail to stabilise the economy. This results in very high inflation and a steep decline in investor confidence, especially in financial markets. Use a suitable economic model to show what is likely to happen to capital flows and associated economic variables. Diagrams are needed to illustrate your answer.

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