A system of floating exchange rate fails when governments ignore the verdict of the exchange markets on their policies and resort to direct controls over trade and capital flows."

A system of floating exchange rates generally relies on market forces to determine the value of a currency based on supply and demand dynamics. When governments intervene by ignoring market signals, such as altering their policies or imposing controls on trade and capital flows, the ______ ___ ____ ____ _____ ___ __________ __________ __________ _________ _________.
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