Question: How does a flexible exchange rate system in general adjust balanceofpayments disequilibria? How does a fixed exchange rate system in general adjust balanceofpayments disequilibria? Why

How does a flexible system in general adjust balance‐of‐payments disequilibria? How does a fixed system in general adjust balance‐of‐payments disequilibria? Why is the choice between these two basic types of adjustment systems important?

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