Economists typically view a ___________ exchange rate system as providing the central bank of a small open economy ___________ control over monetary policy for achieving domestic goals (such as fighting inflation)than a __________ exchange rate system.

Question

Quizplus · Accepted Answer

A flexible exchange rate system allows the central bank more control over monetary policy, as it can adjust interest rates and other tools without needing to maintain a fixed exchange rate.

Economists Typically View a ___________ Exchange Rate System as Providing