Explore BrainMass

Explore BrainMass

    Floating exchange rate system

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Comment on the following statement: "A system of floating exchange rate fails when governments ignore the verdict of the exchange markets on their policies and resort to direct controls over trade and capital flows."

    © BrainMass Inc. brainmass.com June 3, 2020, 9:22 pm ad1c9bdddf

    Solution Preview

    Floating offers, in principle, a small degree of freedom from the subordination and coordination necessary to maintain stable exchange ...

    Solution Summary

    This posting provides the answer to the student's question.