Today, monetary policies are relatively unlikely to be reinforced because of the flexible exchange rate system.

Question

Quizplus · Accepted Answer

Monetary policies can still be effectively implemented in countries with flexible exchange rate systems. The flexibility in exchange rates can actually provide central banks with more autonomy in using monetary policy tools to manage the economy, as they are not committed to maintaining a fixed exchange rate.

Today, Monetary Policies Are Relatively Unlikely to Be Reinforced Because