Advocates of fixed exchange rates argue that each country should be allowed to choose its own inflation rate.

Question

Quizplus · Accepted Answer

While advocates of floating rates argue that each country should be allowed to choose its own inflation rate (the monetary autonomy argument),advocates of fixed rates argue that governments all too often give in to political pressures and expand the monetary supply far too rapidly,causing unacceptably high price inflation.

Advocates of Fixed Exchange Rates Argue That Each Country Should