The Case for Floating Exchange rates There are three arguments in favor of floating exchange rates Monetary policy autonomy Symmetry Exchange rates as automatic stabilizers Copyright C 2003 Pearson Education, Inc Slide 19-4Copyright © 2003 Pearson Education, Inc. Slide 19-4 The Case for Floating Exchange Rates ▪ There are three arguments in favor of floating exchange rates: • Monetary policy autonomy • Symmetry • Exchange rates as automatic stabilizers