Since the early 1970s, floating exchange rates have been at the centre of economic and financial controversy. Are they a necessary safety-valve to allow countries to adjust to international pressures, or are they a pernicious and chronic source of instability in the world economy? These questions are dealt with by leading academic authorities, and central banking practitioners in this third volume of Lloyds Bank Annual Review. Particular reference is made to exchange rate systems against a background of floating; notably Bretton Woods, the European Monetary System, and the Louvre Agreement.

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