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Impacts of fluctuations in the echange rate of a floating exchange rate system? Watch

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    Hello,

    This is unit four and I have this question that I am stuck on....

    In a floating exchange rate system, a currency may be subject to frequent fluctuations in its external value.


    Discuss the possible economic consequences of such fluctuations for the achievement of a country’s macroeconomic objectives. (25 marks)


    So this is the question. I know a lot about exchange rates but I am very unsure how I would structure my answer to this question. What do you suggest?

    Thanks
 
 
 
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