In other words, rather than being distracted by a quest for the ‘perfect system’, perhaps it is wise to focus on improving the working of any given float regime. The real issue in this regard relates to how much of a float is envisaged and the nature, magnitudes as well as instruments of its management.
The International Monetary Fund estimates that since 2007 in the leading advanced economies there has been a five-fold increase in the deficit, from 2 to 10 per cent of GDP. It also forecasts that budget deficits in the euro area will still be more than 3 per cent of GDP in 2014.