ABSTRACT
Between the extremes of eliminating or sharply expanding the international roles of the dollar lie options for change in the international monetary system which provides a kind of middle use of the dollar. One anticipated result of the broadened scope for spot exchange-rate movements is a dampening of international movements of liquid capital. The widened band plus the sliding parity would also prove extremely useful in helping restore and maintain international pay ments equilibrium. The increasingly high degree of price sensitivity which permeates international transactions today provides a basis for optimism concerning the adjustment impact of price changes within such a range. International consultation on rate changes would become possible, and would greatly improve the chances for knowing how other countries would respond, and hence for predicting the net outcome of the exercise. American willingness to change the dollar parity would certainly have increased European willingness to change their parities.
