Central banking with the benefit of hindsight

Summary

From his experience as a central banker during more than 14 years, the author gives some thoughts to three problems, viz. the exchange rates system, international reserves and monetary policy in theory and practice. As to the exchange rate system the relative merits of fixed parities and fluctuating rates are discussed on the basis of the experiences after August 1971. In the section on international reserves, attention is paid to the role of gold with the advice to introduce a form of flexible management of the gold price by the main gold-holding central banks. In the last section the monetary elements of what is called monetarism are shown with a certain accent on techniques of monetary policy.