A description of the exchange-rate mechanism of the European Monetary System and a discussion of some problems with the mechanism that apply to the operation of any target-zone system for maintaining exchange rates.

An examination of proposals to improve the international monetary system by creating central exchange rates and a discussion of why such a policy might not be in the best interest of the United States.

An analysis of exchange-rate patterns and a discussion of factors thought to influence the strength of the dollar in the foreign exchange market.

A discussion of factors that affect determination of the dollar's value in foreign-exchange markets, with an emphasis on various interpretations of the concept of equilibrium.

An examination of arguments for and against the suggestion that nations should return to a Bretton Woods-type system of fixed exchange rates.

An examination of the monetary policy goals of the Federal Reserve System, with a discussion of the role of the M1 target.

An argument that a monetary policy aimed at eliminating long-run inflation would benefit society by removing price distortion, increasing economic growth, adding liquidity to the economy, and reducing uncertainty associated with price-level drift.

In this paper, Dittmar, Gavin and Kydland make two points about commonly proposed rules for inflation targeting. First, they argue that there is a great deal of uncertainty about the price level and inflation inherent in current proposals to target inflation. They show that the degree to which...