A floating exchange rate or fluctuating exchange rate is a type of exchange rate regime wherein a currency's value is allowed to fluctuate according to the foreign exchange market. A currency that uses a floating exchange rate is known as a floating currency. It is not possible for a developing country to maintain the stability in the rate of exchange for its currency in the exchange market.There are economists who think that, in most circumstances, floating exchange rates are preferable to fixed exchange rates. As floating exchange rates automatically adjust, they enable a country to dampen the impact of shocks and foreign business cycles, and to preempt the possibility of having a balance of payments crisis. However, in certain situations, fixed exchange rates may be preferable for their greater stability and certainty. This may not necessarily be true, considering the results of countries that attempt to keep the prices of their currency "strong" or "high" relative to others, such as the UK or the Southeast Asia countries before the Asian currency crisis. The debate of making a choice between fixed and floating exchange rate regimes is set forth by the Mundell-Fleming model, which argues that an economy cannot simultaneously maintain a fixed exchange rate, free capital movement, and an independent monetary policy. It can choose any two for control, and leave third to the market forces.
Search
Blog Archive
-
▼
2010
(293)
-
▼
December
(131)
- Glorious Bengal Beauty Munmun Sen portfolio
- Akka Rasina Boothu Leka
- Sundhari Katha
- Sundhari Katha Three
- Allari Atha Konte Kodalu Sarasam
- Sundhari Katha Two
- Buxom beauty: Ayesha Takia's biography
- Sundhari Katha Eight
- Maa family school (3)
- Maa family school (2)
- Maa family School
- My Experince Two
- My Experince One
- Kushee Ga Denganu
- Big Brother winner: Shilpa Shetty's profile
- Panthulamma
- Joint Dengudu 40
- Joint Dengudu 41
- Beautiful Rani Mukherji's Biography
- South Indian hot Item girl: Silk Smitha's biography
- Lovely South Actress SNEHA's biography
- Krupavathi Banthulu
- Kushee ga Denanu Okati
- Kushee ga Denanu Rendu
- Joint Dengudu 42
- Joint Dengudu 43
- Veera Dengudu Nalugu
- Veera Dengudu Muudu
- Veera Dengudu Rendu
- Veera Dengudu One
- Vijaya Korikalu
- Alludu-Iddaru Athalu-pellam
- Office Bhama One
- Office Bhama Two
- Office Bhama Three
- Office Bhama Four
- Radha Banthulu
- Nenu Maa Pinni Dengullu
- Rendava Srugara Yatra
- One + Two Dengudu
- Pinni...
- Phone Srungara Karyam
- Hemalatha Puku Kaburllu
- Radha Aunty
- Radhika Aunty Ten
- Radhika Aunty 11
- Ravika One-Aaru
- Revathi Aunty
- Ravika Eight
- Ravika Seven
- Ravika Nine
- Nenu Nanna
- Vijaya Aunty...
- Dengudu Korika
- Dengudu Tips
- Meena (Generations)
- Patha Kalam Dengudu...
- Rajini Ranku Puranam
- Swarna
- Chikati Lo Dengudu
- Pukula Shop (Computer Shop)
- Haaa Auntyyyyyyyyy
- Final Aunty
- Kutha Kutha(Flash Flash)
- Puku Vanaa Rendu
- Telugu Puku Swari
- Voluptuous Deepika Padukone biography
- Devi Dengudu
- Pinni-Aunty
- Besider (Pakkinti Dengudu)
- First Time
- Kamala Korikalu
- Cinema Effect
- Lo Jacket
- BavaGaru Banthulu Ata
- Vasundara Aunty
- Anna Vadhina
- Edhi Dengudu Kaadhu
- Software Mogudu Rendu
- Software Mogudu
- Software Mogudu Muudu
- Sarada Durada
- Dengudu Savithi
- Sobhanam
- Telugu Inti Sreemathi Bahumathi okati
- Telugu Inti Sreemathi Bahumathi Rondu
- Telugu Inti Sreemathi Bahumathi
- Sujatha Aunty
- Telugu Korika OKati
- Telugu Vindhu Muudu
- Telugu Vindhu Nalugu
- Telugu Vindhu Okati
- Telugu Vadhina Tho Dengudu
- Telugu Vadi Puku Vijayam
- Kutha Nalugava Bagam
- Kutha Medati Bagam
- Telugu Vallaku Maa Thoti Kodali Dengullu Natho
- Telugu Vallaku Telivain Kodalu
- Telugu Vallaku Suprise Katha
- Aunty Tho Sevachaga
-
▼
December
(131)
0 Comments Received
Leave A Reply