An era of austerity, which the floating-rate system was designed to avoid, is going to occur after all.

ECONOMIST: The link between exchange rates and asset markets

But a floating-rate system is not a free lunch either.

ECONOMIST: The link between exchange rates and asset markets

The three key elements of this policy remained the adoption of a floating exchange rate system, the anchoring of monetary policy to the inflation target and the acceleration of banking sector reforms, he said.

BBC: Indonesia signs new IMF deal

However, in 1971 under President Richard Nixon, the Bretton Woods system collapsed and the major currencies shifted to a floating exchange rate regime.

FORBES: What Happens in a World Without Dollars?