The persistence, although low, of global inflation has made the price of gold too low in real terms. A chronic U.S. trade deficit has depleted U.S. gold reserves, but there has been considerable opposition to the idea of devaluing the dollar against gold; In any event, this would have required an agreement between the surplus countries to raise their exchange rates against the dollar in order to achieve the necessary adjustment. Meanwhile, the pace of economic growth has generally made the level of international reserves insufficient; the invention of the “Special Drawing Right” (SDR)  could not solve this problem. While capital controls were still maintained, they were significantly weaker in the late 1960s than in the early 1950s, increasing the prospect of capital flight or speculation against currencies perceived to be weak. The system was a compromise between the fixed exchange rates of the gold standard, seen as favorable to the reconstruction of the global trade and financial network, and the greater flexibility that countries had used in the 1930s to restore and maintain domestic economic and financial stability. . . .