Final answer:
The importance of the float in the context of floating exchange rates is stability. While exchange rates may fluctuate, stable central bank policies can minimize these fluctuations to maintain economic stability.
Step-by-step explanation:
The importance of the float, particularly in the context of floating exchange rates, is that it fluctuates considerably. Advocates of floating exchange rates recognize that exchange rates may fluctuate, but emphasize that with appropriate central bank policies aimed at preventing high inflation or deep recession and maintaining low and steady interest rates, such fluctuations can be minimized.
The goal is for exchange rates to be free to vary but remain within moderate ranges, ensuring they are very stable. This stability in exchange rates reflects the underlying stability in basic economic policies and conditions. Universal monetary stability, rather than mere existence or decrease of total reserves, is the key consideration for advocates of floating exchange rates.