Fluctuating exchange rates, foreing trade and the price level

Movements in exchange rates may be classified as wild, equilibrating, manipulated (for special and usually illusory purposes), and scientifically controlled. Conventional opposition to flexible exchange rates are open to question for essentially the same reasons as apply to attemps to maintain fixed prices for particular commodities. As long as ao few countires are on the gold standard, a return to this standard by any particular country would not give exchange rate stability. Theorical analysis and the history of trade over the last two decades fail to support the view thath exchange rates rest primarily upon the desiderability of avoiding the disturbances of internal price levels otherwise inevitable in adjustaments in international price structures. The dangers attendant upon varying the gold content of the monetary unit appear to be greatly exaggerated.