ABSTRACT
As was noted in the previous chapter, many major industrialized countries shifted to a regime of flexible or floating exchange rates in early 1973. This change occurred not because the academic arguments for floating exchange rates had been accepted, but because the previous system of fixed parities had collapsed twice within a period of two years (August 1971 and January/February 1973)
Subtotal, pegged
Subtotal, other than pegged
and it was not clear what set of parities would succeed. Except for the subsequent decision of several European Community members to attempt to maintain fixed parities among themselves and to float as a bloc relative to the rest of the world, the countries shifting to flexible exchange rates in 1973 have retained that approach.
