WHILE THE INTERNATIONAL MONETARY SYSTEM iS constantly evolving,
most changes are relatively minor so that certain periods of history can be
characterized by a particular monetary standard. The best description of
current monetary arrangements is the dollar standard. The dollar standard
may well be the best arrangement for the international monetary system of
today, but there is little reason to expect or to desire it to be maintained
indefinitely into the future. The purpose of this paper is to examine the
proper balance-of-payments policy for the United States during the period
of the dollar standard.
