Floating Exchange Rates: Advantages and Disadvantages | Currencies

In this article we will discuss about the advantages and disadvantages of floating exchange rates. Advantage of Floating Exchange Rates: Floating exchange rates have the following advantages: 1. Automatic Stabilisation: Any disequilibrium in the balance of pay­ments would be automatically corrected by a change in the exchange rate. For example, if a country suffers from a deficit in the balance [...]