December 2015
Intermediate to advanced
313 pages
16h 2m
English
Content preview from International Business, 2nd Edition by Pearson
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International Financial System 135
Due to high inflation in the United States, the dollar devaluation remained insucient to restore
stability to the system. By 1973, the dollar was under heavy selling pressure even at its devalued rates.
By late February 1973, a fixed rate system appeared no longer feasible given the speculative flows of
currencies. The major foreign exchange markets were actually closed for several weeks in March 1973.
Where they reopened, most currencies were allowed to float to levels determined by market forces. This
marked the beginning of change to a floating exchange rate system.
The Post-Bretton Woods System:
1973–Present ...
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