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The country of Benin grows and imports rice. If the government of Benin wants their rice farmers to earn more for their rice than the world price but doesn't want its consumers to pay more for rice than the world price so to keep the cost of living the same, what policy should be employed?
How would this impact consumption, production, and welfare?
That presumes that a central bank controls the money creation. If it were not so then any policy would fail, because such a goal is impossible when the money is honest. For instance, a dealer could buy local rice and resell it on the world market. That is exactly how Dow Chemical started*. Nothing makes sense when a country's money is all counterfeit. I suggest you go to mises.org and study the free materials until you feel like you know a few things.
* nowiknow.com/the-bromine-gambit/
