Economic experience since 1973 indicate that,under floating exchange rates

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The economic experience since 1973, when floating exchange rates were introduced, suggests that large and persistent departures from external balance were not prevented. In other words, floating exchange rates did not automatically correct external imbalances and restore equilibrium in the balance of payments. As a result, countries have had to resort to other measures such as fiscal policies, structural reforms, and exchange rate interventions to address external imbalances.

Economic Experience Since 1973 Indicate That,under Floating Exchange Rates