Under fl exible exchange rates, what happens if a country experiences a defi cit in its balance of payments? How long can a defi cit in the balance of payments persist? Why and how do central banks...

Under fl exible exchange rates, what happens if a country experiences a defi cit in its balance of payments? How long can a defi cit in the balance of payments persist?

Why and how do central banks intervene in foreign exchange markets under the managed fl oat exchange rate system?