The Case against Floating Exchange rates There are five arguments against floating rates Discipline Destabilizing speculation and money market disturbances Injury to international trade and investment Uncoordinated economic policies The illusion of greater autonomy Copyright C 2003 Pearson Education, Inc Slide 19-9Copyright © 2003 Pearson Education, Inc. Slide 19-9 The Case Against Floating Exchange Rates ▪ There are five arguments against floating rates: • Discipline • Destabilizing speculation and money market disturbances • Injury to international trade and investment • Uncoordinated economic policies • The illusion of greater autonomy