ies make their exports more expensive and less competitive, while relatively weaker currencies improve the outlook for exports. Since global trade is now the norm, maintaining a strong export trade is particularly important to most governments (Erlanger, 1995, p. C7).
Some managed currencies are managed within a "band;" the currencies float within a predetermined price range (the band), but the government will intervene to prevent the currency from either rising or falling outside the band's parameters. This highly specialized form of managed currency has found particular favor among developing nations as a way to balance the advantages of fixed currencies with the advantages of floating currencies ("The Fixed and the Flexible," 1996, p. 76).
One of the most common arguments against floating currencies is that they are more volatile than fixed currencies. Certainly this would appear to be the case since their prices are subject to market pressure and are not "pegged" to a single measurement (such as the g
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