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Irwin, Maurice Obstfeld English | April 19th, 2024 | ISBN: 0881327492 | 432 pages | True EPUB | 4.63 MB Fifty years ago, in March 1973, the major industrial economies abandoned fixed exchange rates, conclusively ending the post-World War II Bretton Woods arrangements. Proponents believed their action would strengthen countries' ability to reconcile domestic macroeconomic policies with the balance of payments. But opponents feared it would initiate a new era of instability and financial shocks. Since 1973, much of the world has moved away from fixed exchange rates to a variety of regimes based on considerable exchange rate flexibility. But international trade conflicts and unstable capital flows, along with a rise in financial crises around the world, have nonetheless accompanied the global shift away from exchange rate pegs.  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