Question

Advocates of floating rates pointed out that

Answer 1

You have not given choices. Actually they point out many things. They point out that in case of floating exchange rate only one price has to change I. E exchange rate rather than change in all prices. They point out that ultimately fixed exchange rate leds to large destabilising speculation. They point out floating exchange rates show true comparative advantage of countries and led to trade based on comparative advantage. THey also point out there is no need for international management of exchange rates by institutions like IMF Under floating exchange rate. Similarly they point out that central bank does not need to intervene quite frequently in foreign exchange market. Neither is there need for capital controls.