You are president of a country whose currency collapses because of

    You are president of a country whose currency collapses because of a sudden outflow of capital from your economy. You are advised by the IMF that you can raise interest rates to attract money back in and reverse the decline in your currency’s value. But you worry that such a policy could damage the domestic economy—why would you have this worry (in other words, how might such a policy cause domestic problems)?

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