Since they are all linked to gold, they would all trade at fixed exchange rates.
Most other currencies around the world were convertible into the dollar at fixed exchange rates.
There are still remnants of fixed exchange rates, however, that still offer some pretty-sure bets.
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The IMF supports that choice, whether floating exchange rates, fixed exchange rates or dollarization.
The original Bretton Woods deal created financial stability with a system of fixed exchange rates.
In a way, the euro crisis has been caused by a version of fixed exchange rates.
However, governments love to govern and show off their power, so they loved fixed exchange rates.
From 1944 to 1973 stability was supplied by the Bretton Woods system of fixed exchange rates.
This suggests that small, open economies may be best served by fixed exchange rates.
Up until the 1970s, when the Bretton Woods system of fixed exchange rates broke down, these were common.
Under fixed exchange rates, governments should tighten fiscal policy when money floods in, in order to dampen aggregate demand.
But surely, their fans may say, fixed exchange rates have one important advantage: they are less volatile than floating rates.
The actions they take to protect their portfolios demanding higher bond yields, pushing for fixed exchange rates will define the next economic system.
With the collapse of fixed exchange rates in the early 1970s, the IMF morphed into the doctor for governments in financial crisis.
The EIU report linked the climb to price volatility (inflation has reached 20 percent) and fixed exchange rates to the U.S. dollar.
The Thatcher and Reagan administrations also abolished capital controls which had been put in place at a time of fixed exchange rates.
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Fixed exchange rates have helped economies in Latin America to reduce inflation.
The post-war period of financial repression occurred under the Bretton Woods system of fixed exchange rates, which was marked by tight capital controls.
All three countries have fixed exchange rates (currency boards in Estonia and Lithuania, a currency peg in Latvia) fully backed by foreign-currency reserves.
Bretton Woods, which was set up at the end of the Second World War had fixed exchange rates which lasted until the early 1970s.
That was the path taken in the early 1970s, when the D-mark rose after the collapse of the Bretton Woods system of fixed exchange rates.
Governments were helped in keeping rates down because of the capital controls they ran as part of the Bretton Woods system of fixed exchange rates.
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If the days of the cheap dollar and nearly-fixed exchange rates are over, the region also needs to find more dependable ways of managing its currencies.
The stable monetary policy disciplined by fixed exchange rates also minimized the boom and bust business cycle, with its periodic sharp recessions hampering long term growth.
The places most at risk of catching a cold from Brazil's sneeze are those maintaining fixed exchange rates notably Argentina (see article) but also Hong Kong.
James Tobin, an American economist, first proposed a tax on cross-border capital flows in 1972, amid the collapse of the Bretton Woods system of fixed exchange rates.
Why then does he expect a system of fixed exchange rates absent at least one link to gold somewhere in the system would be anymore stable or durable?
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In order to maintain exports and to manage economic expectations, many nations (most notably China) have instituted fixed exchange rates between their own currencies and the U.S. dollar.
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The third stage in the development of central banks came in 1971 when the US abandoned the Bretton Woods arrangement of fixed exchange rates against the dollar.
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