THE EVOLVING INTERNATIONAL MONETARY-SYSTEM AND PROSPECTS FOR MONETARYREFORM

Few would seriously suggest an early return to a global system of pegg ed exchange rates or, even less, to such a system with a link to gold. However, serious proposals have been advanced for some form of a ''ru les-based system'' in which major countries would adopt meaningful com mitments to limit fluctuations in exchange rates among their national currencies and agree to adjust their macroeconomic policies if needed to meet these commitments. In my view, such ''fundamental reform'' of the international monetary system is not now feasible and is probably not desirable. Rather, what we are likely to see is an increasingly ef fective commitment of national monetary policies to the maintenance of low and stable inflation rates, which may be expected to contribute g reater medium-term stability of exchange rates among the major currenc ies.