Q. What has been learned since 1973 with regard to the experience with floating exchange rate regime?

Answer:

1. Monetary policy autonomy:  Yes though floating rate didn't insulate countries completely from foreign policy shock.  Additionally no central bank is able to be indifferent to its currency's value in the foreign exchange market therefore the name "dirty float" rather than "clean float."

2. Symmetry: No the dollar stays an important currency the DM and the yen have gained importance the British pound turn down in importance.

3. The exchange rate as an automatic stabilizer:  Superior performance of the flexible regimes that several believe that or else major realignments of exchange rates must have taken place. Though, a few sectors suffered such as agriculture.

4. Discipline: Did countries misuse the autonomy afforded by floating rates?

Inflation rates did accelerate subsequent to 1973

5. Destabilizing Speculation: Floating exchange rates have exhibited greatly more day-to-day volatility than the early advocates of floating would have predicted. Though exchange rates are assets prices as well as so considerable volatility is to be expected.  Over the long run they don't seem to support the notion of destabilizing speculation.

6. International trade and investment: Detractor of floating claimed that international investment and trade would suffer as a result of the increased uncertainty. This prediction was positively wrong. The utilization of forward markets and other derivatives expanded dramatically.  Still a few economists disagree about the benefit to international trade.

7. Policy coordination:   Floating exchange rates haven't promoted policy coordination.