Desirable features in new international monetary system

Abstract

The new international monetary system that is being hammered out in Washington now must build on the lessons learnt during the 25 years of experience of the Bretton Woods arrangement, Beginning early Sixties a major concern with international monetary experts has been the adequacy of international reserves to enable international trade to grow without restrictions. Many steps taken in the past indicate that the shortage of reserves is not a myth. The present dollar crisis more than any other incident that occurred previously has forced attention on the adjustment mechanism that must go along with a system of fixed exchange rate system. Another complication noted in the working of the IMF system arose from the dollar being treated as a reserve currency.