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There are three broad categories of exchange rate systems. In one system, exchange rates are set purely by private market forces with no government involvement. Values change constantly as the demand for and supply of currencies fluctuate. In another system, currency values are allowed to change, but governments participate in currency markets in an effort to influence those values. Finally, governments may seek to fix the values of their currencies, either through participation in the market or through regulatory policy.
**TODO – Discuss the pro/cons of each of these currency exchange systems which “system” do you prefer & why?**
Minimum of 3 paragraphs, include related graphics & two non-textbook references.
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