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From the IMF:

The exchange rate thus serves as the nominal anchor or intermediate target of monetary policy.

The monetary authority uses its instruments to achieve a target growth rate for a monetary aggregate, such as reserve money, M1, or M2, and the targeted aggregate becomes the nominal anchor or intermediate target of monetary policy.

What are a "nominal anchor" and an "intermediate target"?

Are they just synonyms? If not, what are the difference(s) between them?

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  • $\begingroup$ Could you please add link to the source you are citing? $\endgroup$ – 1muflon1 Feb 25 at 9:38

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