The replacement of fixed exchange rates under the gold standard with floating rates and inflation targets has not worked out well.  We need to return to money with fixed exchange rates, tightly tied to a hard anchor.

 

To avoid the weaknesses of the gold standard that ultimate led to its abandonment in the mid 1970s, we need to replace discretionary monetary policy with currency board rules for maintaining the value of national currencies to that of a hard anchor.  The currency anchor should have a more stable value than gold.

 

The U.S. dollar and any other national currency should be replaced in international monetary reserves by an internationally issued currency following the same currency board rules and fixed to the same hard anchor as used by national currencies.