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Floating Exchange Rates: The Only Viable Solution

   
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Title: Floating Exchange Rates: The Only Viable Solution
 
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Subject: Business
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Date: June 4, 1999
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Length: 10 / 2675
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In the end, the ERM was adjusted to allow currencies to fluctuate within 15 percent on either side of their assigned level, up from (in most cases) a limitation of 2.25 percent. The bands became too wide to be meaningful or stabilizing, and the system remained alive "in name only" (Whitney 19)...
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The bands became too wide to be meaningful or stabilizing, and the system remained alive "in name only" (Whitney 19). Many saw this collapse as inevitable and say all attempts at government-imposed stability will fail: Governments both will not and cannot stick to pegged or fixed rates...
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