What is free or flexible exchange rate?
I'm wondering about the concept of a free or flexible exchange rate. Could someone explain what it means and how it works in the global financial system?
What is a floating or flexible exchange rate regime?
Could you please elaborate on the concept of a floating or flexible exchange rate regime? How does it differ from a fixed exchange rate system? And what are the advantages and disadvantages of adopting such a system for a country's economy? I'm particularly interested in understanding how it impacts international trade and capital flows.