The choice between the alternative exchange rate regimes (fixed or floating) is likely to involve a trade-off between

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The choice between fixed or floating exchange rate regimes involves a trade-off between national monetary policy autonomy and international economic integration. A fixed exchange rate regime gives up monetary policy autonomy in order to ensure exchange rate stability, while a floating exchange rate regime allows for greater monetary policy flexibility but can result in more exchange rate uncertainty. Ultimately, the best choice depends on a country's economic priorities and circumstances.

The Choice Between the Alternative Exchange Rate Regimes (Fixed or Floating)