Proponents of the managed floating exchange rate system argue that it has:

Question

Quizplus · Accepted Answer

The managed floating exchange rate system has been sufficiently flexible to weather major economic turbulence, as it allows for some government intervention when necessary while still allowing the market to determine exchange rates. However, it has not necessarily resolved major problems in balance of payments surpluses and deficits, and it is not necessarily effective because it lacks fixed rules. The system may also contribute to volatility in the exchange rate market.

Proponents of the Managed Floating Exchange Rate System Argue That