The following paper was presented at a seminar at this bank by Harry G. Johnson, Professor of Economics at both the London School of Economics and Political Science and The University of Chicago. Professor Johnson prepared the paper in March 1969 for The Institute of Economic Affairs, London, England. Together with a paper by John F. Nash, it has been published by The Institute of Economic Affairs as “UK and Floating Exchanges,” Hobart Papers No, 46, London, England, May 1969.