Talk:Floating exchange rate

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Fixed exchange rates attract floating ones, no? Competition and all that. --Ihope127 23:34, 22 July 2005 (UTC)

[edit] What Economists Think - Circular Argument

The following phrase is in the current article:-

"Economists generally think that, in most circumstances, floating exchange rates are preferable to fixed exchange rates because floating rates are responsive to the foreign exchange market."

This is really just saying that economists think floating exchange rates are preferable because they are floating. It is a circular argument and hardly encyclopedic. Does anybody want to improve it? If not then I will remove it. Terjepetersen 11:04, 2 May 2006 (UTC)

[edit] Inflation targeting

The article completely ignores the fact that most central banks do not simply let the exchange rate float. Instead they focus directly on keeping the inflation stable and then let the exchange rate absorb external shocks. This implies using the interest rate actively to react to shocks. Buying and selling your own currency is generally considered a very bad idea for obvious reasons. MartinDK 16:23, 19 October 2006 (UTC)