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    Floating exchange rate system

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    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."

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    https://brainmass.com/business/foreign-exchange-rates/floating-exchange-rate-system-178769

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

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