Floating exchange rate example
For example, if the exchange rate deteriorated rapidly, they may increase interest rates to keep the value stronger. For example, in the late 1980s, the UK had a Nov 13, 2019 Flexible exchange rates can be defined as exchange rates determined by global supply and demand of currency. In other words, they are Useful instrument of economic adjustment: For example depreciation of the exchange rate can provide a boost to exports and stimulate growth during a recession