Question

A fixed exchange rate is overall better than a free float one. Do you agree or disagree?  Please elaborate

Answer 1

I do not agree because I think the fixed exchange rate is highly regulated and it is not reflecting true economic situations in the economy and it is restricting the free trade to a large extent because there will be a high degree of regulations by the central banks and the government and they will be always trying to fix the exchange rate and hence there will be exploitation of interest of market participants to a large extent and it can be said that these fixed exchange rate will never be promoting transparency and hence these are not the reflection of of progressive economy so these restrictions are not reflecting Higher market participations and fair transparency, so I do not advocate for fixed exchange rate because there is a restriction related to price discovery by encountering through a large number of market participants and hence I disagree completely.