This paper examines and dissects eight popular conjectures about exchange rates. The conjectures are: there exists a systematic linkage between economic fundamentals and exchange rates; flexible exchange rates are unstable due to destabilising speculation; flexible exchange rates are excessively...

Examines, in a paper written in 1938 by Lauchlin Currie, the banking and monetary system of the USA. Presents the 100 percent reserve plan, its claimed advantages and the objections to it. Concludes that a basic reform in the nature of the 100 percent reserve plan is inevitable.