Under a dirty float,the value of a country's currency is ________.

Question

Quizplus · Accepted Answer

Under a dirty float, the value of a country's currency is influenced by the monetary authorities. This means that the government may intervene in the currency market to manipulate the exchange rate to suit their economic objectives, such as export competitiveness or inflation control. The term "dirty" is used because there is some intervention, but not as much as under a fixed exchange rate system.

Under a Dirty Float,the Value of a Country's Currency Is