Abstract
The breakdown of fixed exchange rates within the European Monetary Union — with the separate floats of Britain, Italy and France — has coincided over the 1971–4 period with the broader collapse of the Bretton Woods and Smithsonian agreements, which were designed to keep exchange rates within more or less narrowly defined bands. Fortunately, the floating of exchange rates has so far prevented inconvertibility among major currencies. Yet these floating rates have also been associated with high international inflation, continued large changes in relative currency values, and erosion in the confidence that individuals had in fiat money whatever its national origin.
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© 1977 Graduate School of Business, University of Chicago
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Mckinnon, R.I. (1977). Beyond Fixed Parities: The Analytics of International Monetary Agreements. In: Aliber, R.Z. (eds) The Political Economy of Monetary Reform. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-02998-3_4
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DOI: https://doi.org/10.1007/978-1-349-02998-3_4
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-03000-2
Online ISBN: 978-1-349-02998-3
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