answersLogoWhite

0


Best Answer


Just go through the link below.


Mohamed Ahmed Sarhan Al-Ahwal - Yemen

http://books.Google.com.my/books?id=DhXcjkxjLvoC&pg=RA1-PA177&lpg=RA1-PA177&dq=disadvantage+of+a+freely+floating&source=bl&ots=zgSbW7KTJd&sig=nOmLH4WRSXrhFU9qji3D6ssiRi8&hl=en&ei=n2rHSrvtE4eUkAWS_Mw5&sa=X&oi=book_result&ct=result&resnum=3#v=onepage&q=disadvantage%20of%20a%20freely%20floating&f=false

User Avatar

Wiki User

14y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What are the disadvantages of freely floating exchange rates?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Features of floating exchange rate?

In a floating exchange rate system, the rates keep on changing according to the economic conditions. The rates of the currencies are never fixed.


If the supply and demand for currency determines the exchange rates this is called?

floating


How was the world economy after Bretton Woods'agreement?

They tried to immediately find a new set of exchange rates after Bretton Woods failed- it didn't relieve it much. They used a free-floating regime which is a very mixed bag of floating and fixed exchange rates.


What are the advantages of exchange rate?

The advantages of floating exchange rates are: Flexibility and automatic adjustment, Flexibility in determining interest rates, Greater insulation from other countriesâ?? economic problems, Lower foreign exchange reserves.


What has the author Ronald MacDonald written?

Ronald MacDonald has written: 'Gambier's Advocate' 'The sea maid' 'The macroeconomic impact of government budget deficits' 'Floating exchange rates' -- subject(s): Foreign exchange 'International parity conditions' 'Our experience with floating exchange rates' 'The sword of the King' 'Cointegration and the consumption function' 'From a northern window' -- subject(s): Scottish Authors, Biography 'International Money and Finance' 'What do we really know about real exchange rates?' -- subject(s): Foreign exchange rates 'A Human Trinity'


Explain using economic models how an exchange rate is determined under a floating exchange rate regime What are the factors that can cause an appreciation in exchange rates Malaysia has recently cha?

Exchange rates are determined through supply and demand. An increase in interest rates can appreciate an exchange rate as investors convert their money into that currency to take advantage of a higher return on their money.


What has the author Amartya Lahiri written?

Amartya Lahiri has written: 'Delaying the inevitable' -- subject(s): Balance of payments, Interest rates, Monetary policy 'Segmented asset markets and optimal exchange rate regimes' -- subject(s): Econometric models, Foreign exchange rates, Prices 'Living with the fear of floating' -- subject(s): Econometric models, Foreign exchange rates, Interest rates, Monetary policy


Why a cut in government spending has a larger effect under a fixed exchange rate system and perfect capital mobility than in a closed economy?

fixed and floating exchange rates


What is 240 hong kong worth in NZ dollars?

Since NZ has a floating currency, the best place for this question is in the exchange rates in the newspaper, or an enquiry at a bank.


What are foreign exchange rates?

Foreign exchange rates are currency exchange value of other countries.


What is meant with money exchange rates?

If you are dealing with overseas currency it is necessary to know exchange rates. The exchange rates vary from day to day. exchange rates compare how much a certain country's currency is worth against another countries.


What are the disadvantages of FDI in connection with export promotion?

One of the disadvantages of the FDI in connection with export promotion is that it is affected with other conditions like the deterioration of the exchange rates. The other disadvantage is that the cost of exporting the perishable goods is high.