Occasional Papers

The Exchange Rate System: Lessons of the Past and Options for the Future

Publication Date:

July 8, 1984

Summary:

The last few years have witnessed a resurgence of calls for a re-examination, or perhaps even a reform, of the international monetary system. This paper contributes to the ongoing debate on that subject in three ways: 1 it suggests a set of criteria for evaluating alternative exchange rate systems; 2 it provides a comprehensive appraisal of a decade of experience with the present exchange rate system in terms of those criteria; and 3 it selects some key issues as a basis for discussion on how the evolution of the exchange rate system might best be managed over the medium term.

Series:

Occasional Paper No. 1984/003

Subject:

Balance of payments Currencies Current account Exchange rate adjustments Exchange rate arrangements Exchange rates Foreign exchange Money Real exchange rates