Why is a fixed exchange rate regime that promotes the stability of the currency value inherently unstable?

Question:

Why is a fixed exchange rate regime that promotes the stability of the currency value inherently unstable?

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Essentials Of Business Research Methods

ISBN: 9780367196189

4th Edition

Authors: Joe F. Hair, Michael Page, Niek Brunsveld

Question Posted: