Arthur F. Burns

The Anguish of Central Banking

The international monetary system, which has been in almost constant turmoil during the 1970s, benefited towards the end of the decade from several developments. Under the amended Articles of Agreement, the International Monetary Fund can exercise firm surveillance over the exchange-rate policies of its members, and is therefore now in a position to move the nations of the world toward a rule of law in international monetary affairs. Another promising development was the establishment of the European Monetary System with the aim of maintaining relatively stable exchange rates within the Common Market.