One limitation of maintaining a fixed exchange rate system is that:

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When a country maintains a fixed exchange rate system, it ties its currency value to another currency or a basket of currencies. This means that the country cannot use monetary policy to influence its own exchange rate. For instance, if a country wants to stimulate the economy by lowering interest rates, it may lead to currency depreciation which is not possible due to the fixed exchange rate system. This limitation makes it difficult for the country to achieve other goals such as full employment, which can be accomplished by using monetary policy.

One Limitation of Maintaining a Fixed Exchange Rate System Is