Your Questions About Online Foreign Exchange Trading Software
Steven asks…Calls for substitutes threaten America's most successful export, the greenback. Is the Floating Dollar Sunk?In theory, floating exchange rates were supposed to allow economies to reduce trade deficits by letting the currency adjust. A weaker exchange rate would drive up the cost of imports and make exports more competitive, thus reducing deficits. Under fixed exchange rates, the economy would have to be constricted to eliminate imbalances, reducing imports and lowering prices to