Advocates of flexible exchange rates claim that under flexible exchange rates

Question

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Advocates of flexible exchange rates argue that having enhanced control over monetary policy would allow countries to dismantle their distorting barriers to international payments, as they would be able to use monetary policy to stabilize their economies without having to worry about the impact on the exchange rate. This would in turn lead to an increase in international trade and investment, as there would be fewer barriers to cross-border movement of goods, services, and capital.

Advocates of Flexible Exchange Rates Claim That Under Flexible Exchange