Floating Exchange Rates after Ten Years
TEN YEARS AGO, in March 1973, the United States and other nations abandoned efforts to maintain the Bretton Woods system of fixed exchange rates among the major currencies. The period of largely marketdetermined (floating) exchange rates between the dollar and other major currencies began. This fundamental change in the international monetary system was ratified by the Rambouillet Summit in 1975 and the Second Amendment of the International Monetary Fund's Articles of Agreement in 1978.
Bonnie E. Loopesko
Federal Reserve Bank of New York