Many Emerging Market Countries Would Prefer to Use a Floating

Many emerging market countries would prefer to use a floating rate currency regime but are forced by circumstances to adopt a fixed rate regime. The reasons they would prefer to use a floating rate regime include which of the following?

A) Helps in the fight against inflation because countries must intervene domestically to take counterinflationary actions.
B) Governments can follow domestic policies to reduce unemployment or to stimulate growth without having to explicitly consider international implications of the exchange rate.
C) International reserves do not have to be used to preserve the exchange rate because it is allowed to find its own equilibrium level.
D) All of the statements above are correct.
E) Only statements b and c are correct.