This is why our agreement with the government is crucial. The government is making it clear that it also supports low, stable and predictable inflation, while leaving us the independence to pursue that goal as we see fit.
Corrections of exchange rates were made too late and often brought about new misalignments. Secondly, the years in which the system flourished have to be seen against the backdrop of restricted convertibility. It was not until 1961 that most west European countries introduced full convertibility. And precisely in the United States, too, capital controls were a frequently deployed instrument into the 1960s.