Skip to content

Controls Quote by Steve Hanke

“Although floating and fixed rates appear dissimilar, they are members of the same freemarket family. Both operate without exchange controls and are free-market mechanisms for balance-of-payment adjustments.” quote by Steve Hanke
Download Open image
“Although floating and fixed rates appear dissimilar, they are members of the same freemarket family. Both operate without exchange controls and are free-market mechanisms for balance-of-payment adjustments.”

Steve Hanke

About This Quote

Source Paper: "Floating vs Fixed Exchange Rates", 1995

Floating and fixed rates differ yet belong to the same free‑market system.

In simple terms: Both rates are free‑market mechanisms.

Key Takeaway

Understand both rate types.

Themes

economics exchange rates policy

Mood

analytical neutral

Type

academic informative

When to use this quote

  • currency crises
  • investment decisions
  • trade negotiations

Key Concepts

market mechanisms balance of payments

Questions to Reflect On

  • When is a floating rate preferable?
  • What risks do fixed rates pose?
A Different Perspective

Complex technical details.

2.5 out of 5 (7 ratings)

More by Steve Hanke

Explore all 34 Steve Hanke quotes

More Controls quotes

Browse all 131 Controls quotes