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Using National Currencies in International Trade: The Case for Fixed Exchange Rates

In: Shaking the Invisible Hand

Author

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  • Basil John Moore

Abstract

Although international trade is conducted under different types of trading regimes, most countries continue to use their own national currencies in international transactions. Profound changes were introduced into the postwar world when the Bretton Woods fixed-but-adjustable exchange rate regime broke down in the early 1970s and the trading system evolved into a flexible exchange rate regime. The current flexible exchange system was not adopted volitionally. It was forced on countries by the inability to maintain fixed exchange rates under Bretton Woods.

Suggested Citation

  • Basil John Moore, 2006. "Using National Currencies in International Trade: The Case for Fixed Exchange Rates," Palgrave Macmillan Books, in: Shaking the Invisible Hand, chapter 17, pages 385-408, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-51213-9_17
    DOI: 10.1057/9780230512139_17
    as

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