The difference among a floating and managed exchange rate, Macroeconomics

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Explain the difference among a floating and managed exchange rate.

The key distinction here is that a floating exchange rate is set by market forces, i.e. supply and demand. A managed exchange rate - defined perhaps as an adjustable peg or simply pegged exchange rate regime - will see how the rate is set by central bank policy and upheld by intervention purchasing/selling of the domestic currency.

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