Under a floating exchange rate regime, a country's currency can experience significant and unpredictable volatility in its external value.
Discuss the potential economic consequences of this exchange rate volatility for the successful achievement of a government's macroeconomic objectives.
310 exam-style questions on AQA A Level Economics 2.6 The international economy (A-level only), covering 2.6.1 Globalisation, 2.6.2 Trade, 2.6.3 The balance of payments, 2.6.4 Exchange rate systems, and 2.6.5 Economic growth and development. Each one has a worked solution and a mark scheme showing where the marks go.