This theory considers the exchange rate as an additional tool for regulating the economy, offering a flexible exchange rate regime that is controlled by the state. This theory got this name because its authors believe that the exchange rate should be based on parities and agreements established by international bodies.
Most ideas of the theory of floating exchange rates are not implemented. So, it was not possible to achieve automatic balancing of balance of payments, highly effective protection against the spontaneous movement of “hot” money, and the suppression of international the spread of inflation.