the goals of the IMF (2)

Thus,parity values were established by agreement,but variations of 1 percent above and below parity were permitted.These limits were to be maintained by central banks,which would buy dollars if the price of the dollar fell to the /1 percent floor or would sell dollars if the price of the dollar rose to the + 1 percent ceiling.The word adjustable in the phrase' paged but adjustable' refers to the fact that, if a country experienced prolonged BOP deficits or surpluses at the pegged exchange rate,an IMF-approved devaluation or upward revaluation of the currency,s parity value could be undertaken.In fact,as the IMF evolved,there were few changes in parity values.The desire for stable and relatively fixed rates was a reaction to the wide fluctuations,the competitive deprecations,the shrinkage in trade,and the instability of the world economy in the interwar period off the 1920s and 1930s.Another objective of the IMF was the reconciliation of country adjustments to payments imbalances with national autonomy in macroeconomic policy.