The Case for Floating Exchange rates Monetary Policy autonomy Floating exchange rates Restore monetary control to central banks Allow each country to choose its own desired long-run inflation rate Copyright C 2003 Pearson Education, Inc Slide 19-5Copyright © 2003 Pearson Education, Inc. Slide 19-5 ▪ Monetary Policy Autonomy • Floating exchange rates: – Restore monetary control to central banks – Allow each country to choose its own desired long-run inflation rate The Case for Floating Exchange Rates