ECB paper on exchange rate misalignments

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A European Central Bank (ECB) paper published on Friday investigates appropriate policy responses to exchange rate misalignments and current account imbalances.

The paper, authored by Luca Dedola and published in the ECB's Summer Research Bulletin, looks at recent research on the emergence of misalignments and imbalances and examines the related policy implications from financial market imperfections. Dedola says while the international monetary system proved to be fairly resilient during the

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