Senator Spark
Spark498
Atlas Politician
Junior Chimp
Posts: 9,727
Political Matrix
E: -6.58, S: 0.00
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« on: June 01, 2021, 08:29:01 AM » |
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While Fixed exchanges rates are more desirable to promote stability, it causes less of an ability to adjust during a crisis. Tying one currency to another could tank that currency with one being pegged to the other. Of course, the central bank needs to intervene to stabilize the currency.
I don't think floating exchange rates should be used in developing economies because the market can be too volatile.
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