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How do financial markets grade government economic policies

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In what ways do financial markets grade government economic policies?

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The expert determines how financial market grades government economic policies. This posting gives a detailed solution to the student's question.

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Traders and their customers receive a continuing flow of news from around the world. The announcement of a new policy leads traders to buy or sell currency, stocks or bonds based on their evaluation of the effect of that policy on the market. A desirable policy leads them to buy more of the assets ...

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