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Download Increases in Global Commodity Prices
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Floating ï§ Bolivia might consider allowing more exchange rate flexibility ï§ to the extent that the economy is in danger of overheating. ï§ Some appreciation â a natural consequence of rapid growth and high real interest rates â would help hold down inflation. ï§ But then some alternative nominal anchor would be needed, ï§ to help meet central banksâ mandate of preventing inflation in the long run.
