Countries can try to keep exchange rates stable but can change rates if necessary {adjustable peg system}. Countries can maintain exchange rate and maintain certainty for businesses, but this does not allow monetary policy. Countries can let exchange rate float freely and independently use monetary policy, but this causes uncertainty for businesses.
Social Sciences>Economics>Macroeconomics>International Trade>Exchange Rate
6-Economics-Macroeconomics-International Trade-Exchange Rate
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Date Modified: 2022.0224