For the most part, floating exchange rates are better than fixed exchange rates but floating exchange rates do present their own disadvantages when compared to fixed ones. The disadvantages include that they allow central banks to be more relaxed about policies and this could lead to cases of hyperinflations in severe cases e.g. Germany. Floating exchange rates can also lead to speculation on the currency which can destabilize the economy. They make international trade less predictable as countries fear exposure to foreign exchange risk. Additionally, floating exchange rates can lead to competitive currency depreciations and this also leads to increased economic uncertainty with no real macroeconomic freedom. Therefore floating exchange rates, although offering more flexibility, do not always lead to better economic outcomes.