(Hill 289).
Flexible exchange rates first found favor among industrial countries in the early 1970s; the determination of the exchange rate arrangement and the choice of the currency "peg" (measure) became major policy issues for developing countries (Rothbard 8A). This question took on more urgency in 1973 with the first oil price shock, and became important again in 1982 as the debt crisis began to unfold. Meanwhile, increasing numbers of developing countries were moving to flexible exchange rates, which caused concern in the developing countries. The problem was that, until recently, there had been a widespread belief that freely floating rates in developing countries would not work. The argument was that for countries to successfully operate market-determined exchange rates, they would need very sophisticated financial structures, including forward and futures markets, that were often lacking in developing countries. There had also been a concern that floating the currency in the context of serious balance of payments difficulties could lead to
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