Floating Exchange Rates at Fifty - Paperbackby Douglas a. Irwin (Editor), Maurice Obstfeld (Editor) Fifty years ago, in March 1973, the major industrial economies abandoned fixed exchange rates, conclusively ending the post World War II Bretton Woods arrangements. Proponents believed their action would strengthen countries' ability to reconcile domestic macroeconomic policies with the balance of payments. But opponents feared it would initiate a new era of instability and financial shocks.