Asked by Jessica Querol on Jun 14, 2024
Verified
What is a managed floating exchange rate? What year did the United States begin using the managed-float system?
Managed Floating Exchange Rate
A currency value system that allows its exchange rate to fluctuate in response to the foreign-exchange market but with central bank interventions to stabilize it when deemed necessary.
- Examine the determination of exchange rates within both flexible and managed floating exchange rate regimes.
Verified Answer
KS
Karanpreet SinghJun 18, 2024
Final Answer :
A managed floating exchange rate is an exchange rate that is allowed to change (float)as a result of changes in currency supply and demand but at times is altered (managed)by governments via their buying and selling of particular currencies. The United States began using the managed-float system in 1971.
Learning Objectives
- Examine the determination of exchange rates within both flexible and managed floating exchange rate regimes.
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