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Problems of the international monetary system. The problem of gold and its international monetary role. First, an explication of the issue of the U.S. balance-of-payment deficit. The key role played by the dollar in the present international monetary system. How the system has enabled the U.S. to finance its sustained deficit. The fact that foreign monetary authorities must hold dollars if they are not to precipitate a collapse of the system; but foreign monetary authorities could precipitate such a collapse, allowing them to exercise pressure on the U.S. Administration to pursue policies designed to mitigate the deficit and accelerate its solution. A conflict deriving from the system of fixed exchange rates itself. Adjustment of the balance-of payment disequilibrium between the U.S. and European economies bound to be a prolonged and politically acrimonious process. The major implications for the present international monetary system. A detailed discussion of this situation follows, including de Gaulle's invitation to return to the gold standard. What this would mean. Arguments against attempting to return to the gold standard. Why the gold standard cannot be restored. Alternatives suggested. The next stage in the evolution of the international monetary system. What will happen to gold.