Floating exchange rates should not be “disregarded” in favour of alternative regimes, even when volatile capital flows cause “acute swings”, a deputy governor of the Bank of Mexico has said.
Speaking on December 2, Javier Guzmán Calafell said flexible exchange rates allow countries to implement “fully autonomous monetary policy”, although he admitted in recent years they have caused some emerging markets issues.
“As volatile flows of capital across borders have led to acute swings in exchange
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