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)[reply]

Canada so special after all?

Article: "Canada is the only country whose currency's value is determined absolutely and entirely by the foreign exchange market;"

Website cited: "Canada's current policy is to intervene in foreign exchange markets on a discretionary, rather than a systematic, basis and only in the most exceptional of circumstances. ... Foreign exchange market intervention is conducted by the Bank of Canada, acting as agent for the federal government, using the government's holdings of foreign currencies in the Exchange Fund Account."

It seems that Canada is like most other economies with floated currencies: shunning intervention until necessary. Hence, I have deleted what I quoted above. 124.189.69.206 (talk) 08:38, 16 June 2008 (UTC)[reply]

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)[reply]

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)[reply]

Merging of Floating exchange rate and Floating currency and