Foreigen exchange

1.             Inflation

2.             Changes in demands for export import

3.             Invisible trade

4.             Interest rates

5.             Capital movements

6.             Speculation

7.             Government activities

8.             Confidence to future and speculation

Adv of float

1.             Automatic stabilisation

2.             Freeing internal(unempl) policy constr.

3.             Absence of crisis

4.             Management can still exist

5.             Flexibility(after oil price changes)

6.             Avoiding the import of inflation.

7.             Lower reserves

Disadv

1.             Uncertainty

2.             Lack of investment

3.             Speculation

4.             Lack of discipline