For fixed exchange rates among nations to work, participating nations must

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For fixed exchange rates to work, participating nations must maintain domestic economic conditions that maintain equilibrium currency values close to the fixed rates. Without this, the exchange rates will not remain fixed and stability in the exchange rates will be lost. Pursuing independent fiscal and monetary policies will lead to fluctuations in exchange rates. A uniform currency is unnecessary for fixed exchange rates and refraining from trading with non-participating countries is not feasible in a globalized economy.

For Fixed Exchange Rates Among Nations to Work, Participating Nations