Managing Exchange Rates

Nothing is altogether final in international finance. Disappointment with floating rates has revived interest in old ideas for obtaining greater stability. With authority and subtlety, Professor Kenen of Princeton examines alternatives and looks hard at the requirements for success. Leaving major reforms to the future, he recommends governmental agreements that are clearer and firmer than recent "informal" understandings and that establish bands within which rates can move and major expansion of the reserves that can be drawn on to intervene in the market.