Managed floating exchange rate system advantages and disadvantages
Economists do not all agree on the advantages and disadvantages of a floating as opposed to a pegged exchange rate system. For instance, some would argue that a major advantage of flexible rates is that each country can follow domestic macroeconomic policies independent of the policies of other countries. ADVERTISEMENTS: Though the debate still continues over the relative merits of (a) fixed or stable exchange rates, (b) flexible or floating exchange rates, and (c) a compromise between the two systems, it is not completely unresolved. Related posts: Short Essay on Fixed and Flexible Exchange Rates What are the Advantages of Fixed Exchange Rates? Advantages and disadvantages managed floating exchange rate system? We need you to answer this question! If you know the answer to this question, please register to join our limited beta program