What is the major reason for the increased volatility of both exchange rates and net exports after 1973?

Question

Quizplus · Accepted Answer

The major reason for the increased volatility of both exchange rates and net exports after 1973 was the move towards flexible exchange rates in the world economy. Flexible exchange rates allow the exchange rates to be determined by market forces rather than fixed exchange rates, which were determined by government intervention. This increased volatility and uncertainty in exchange rates, which in turn affected net exports as the cost of producing and exporting goods varied with changing exchange rates.

What Is the Major Reason for the Increased Volatility of Both