The Evolution of the International Monetary System, 1945–88

The Evolution of the International Monetary System, 1945–88 (originally published in 1977, reissuing the fourth edition of 1988) provides essential background on the international monetary arrangements operated by the central banks and treasuries of non-communist countries since World War II.

The book places particular emphasis on how these institutions coordinated their policies—whether through market mechanisms, international negotiation, or international institutions such as the International Monetary Fund and the European Monetary System. Writing from the vantage point of January 1988, Professor Tew reflects on fifteen years of experience with floating exchange rates following the collapse of Bretton Woods in the early 1970s. He describes and assesses the United States’s evolving policy stances: its initial position of ‘benign neglect’, President Carter’s shift toward ‘leaning against the wind’, the Reagan administration’s return to benign neglect in 1981, and finally, US Treasury Secretary Baker’s renewed push in September 1985 to lead international coordination of exchange-rate policy.