Floating Exchange Rates?

Question

With so many arguments for and against floating currency exchange rates, I cannot decide what to support. Please choose a side and convince me which position to adopt. In your essay, include both logical reasoning and empirical facts, or economic history since 1973,

Answer 1

It depends on the terrain and situation:
http://en.wikipedia.org/wiki/Floating_exchange_rate

There are also numerous arguments to the effect that the larger the economic unit, the smaller the advantages of floating exchange rates. Jane Jacobs is eloquent on this subject and commentaries by many economists about the Euro confirm their agreement.

On the other hand, what is a "fixed" exchange rate these days? Fixed to what? Gold is clearly too dangerous. To other currencies?

No simple answers.