Floating Exchange Rate
floating
Fiscal and monetary policies under managed floating exchange rate regimes?
pegged exchange rate is officially fixed in terms of gold or any other currency in foreign exchange. Floating exchange rate is flexible rate in which value of currency is allowed to adjust freely determined by the supply & demand of foreign exchange
Pegged currency ^For me on apex 2022 :)
fixed rate
The exchange rate for that currency changes depending on the operations of the free market
When the dollar is under a flexible exchange rate regime
The great atraction of a floating exchange rate is that in theory it provides a kind of automatic mechanism for keeping the balance of payment in equilibrium.
The exchange rate for that currency changes depending on the operations of the free market
increase in importation of the products
Floating exchange rate