Economy, asked by redent5739, 8 months ago

Give arguments in favour of fixed exchange rate.

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Answered by farhankhan121

1

Answer:

The main arguments against the fixed or pegged rates of exchange are as follows: (i) Primacy to Exchange Stability: ... In a country under fixed exchange system, the BOP deficit can be corrected through deflationary policies that may result in a fall in prices, recession and greater unemployment.

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