The restabilisation of the dollar after the suspension of its convertibility may be followed by a period of frequent minor changes of parities of important currencies. These changes may assume the form of statutory devaluations and revaluations periods of floating. Or there may be de facto changes of the support points at which various Governments will hold the actual exchange rates of their respective currencies, independently of their nominal gold parities. The present chapter aims at examining the situation that would be created by the adoption of floating exchanges in the real sense of the term.
KeywordsExchange Rate Central Bank Foreign Trade Support Point Monetary Authority
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