Question: a. What are the five basic mechanisms for establishing exchange rates? b. How does each work? c. What costs and benefits are associated with each

a. What are the five basic mechanisms for establishing exchange rates?

b. How does each work?

c. What costs and benefits are associated with each mechanism?

d. Have exchange rate movements under the current system of managed floating been excessive? Explain.

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a The five basic mechanisms for establishing exchange rates are free float managed float targetzone arrangement fixedrate system and the current hybrid system b In a free float exchange rates are dete... View full answer

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