Is the current flexible system less crisis-prone

Reference no: EM131140062

In the early 1970s, the United States moved from a system of fixed exchange rates to a system of floating ones. Is the current flexible system less crisis-prone, or does it provide a better framework for macroeconomic stability? Discuss the lures and dangers in exchange market intervention when exchange rates are flexible. Do you think such intervention is a good idea? 9. Is the importance of spillover effects larger or smaller under flexible exchange rates, as opposed to fixed ones? Is macroeconomic management easier under one regime than the other?

Reference no: EM131140062

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