What exchange rate regime will be better for both flexibility and stability?

Comments on Barry Carin "Prospects for France’s presidency of the G20", 4/03/2011, http://www.eastasiaforum.org/2011/03/04/prospects-for-france%e2%80%99s-presidency-of-the-g20/

It is interesting to note that the original French agenda includes exchange rate instability and commodity price volatility.


What does exchange rate instability mean?

And what does it mean for the US or some other countries push for floating exchange rate for China?

Wouldn’t that suggest that free floating can be as problematic as completely fixed exchange rate regime?

PS: While at the moment there is no universally accepted solutions to exchange rate instability and commodity price volatility, it does not mean that excessive volatility and instability are good for the world economy or businesses.

Economists and government officials and advisors must consider what regime will work better.