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Q. Present the case against floating exchange rates.
Answer:
1.The discipline obligatory on individual countries by a fixed rate would be lost.
2. Undermine speculation and money market disturbances.
3. Damages to investment and international trade.
4. A Clumsy economic policies.
5. The misapprehension of greater autonomy.
Explanation with critical appraisal
under fleible exchange rate regime what are the consenquences of current account deficit and surplus
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WHAT IS FOREIGN EXCHANGE THEORY
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