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Nominal Anchor

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Nominal Anchor
A government policy that provides stability to an economy at the expense of some of that government's autonomy. For example, if a government pegs its currency to another, it reduces the uncertainty in exchange rates but also gives the government less ability to combat inflation or otherwise change the money supply.


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The second is concerned to what extent a tight credit policy (to contain inflationary impact) may provide a nominal anchor under imperfect asset substitutability.
The directors supported the Kingdom's decision to maintain the dollar peg that has provided a credible and stable nominal anchor and contributed to macroeconomic stability.
Qatar's central bank is targeting the exchange rate as a nominal anchor with the riyal pegged at 3.
 
 
 
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