Silvia
Wed Aug 07 2024
|
7 answers
924
Do fixed exchange rates work?
Excuse me, but I'm curious about the effectiveness of fixed exchange rates. Could you elaborate on the pros and cons of this system? I've heard that it can help stabilize economies and attract foreign investment, but I'm also aware of potential drawbacks such as loss of monetary policy flexibility. Can you provide some real-world examples of countries that have successfully implemented fixed exchange rates, and those that have struggled with the consequences? Additionally, what factors should policymakers consider when deciding whether to adopt a fixed exchange rate system?
