In the case of a fundamental disequilibrium, when the balance of pay-
ments problems are not of a temporary nature, a country could apply for
permission from the IMF to devalue or revalue its currency. Such a per-
manent change in the parity rate of exchange was rare. Table 2.1 sum-
marizes the history of exchange rate adjustments over the Bretton Woods
period for the major industrial countries.
We notice, then, that the Bretton Woods system, although essentially
a fixed, or pegged, exchange rate system, allowed for changes in exchange
rates when economic circumstances warranted such changes. In actuality,
the system is best described as an adjustable peg. The system may also be
described as a gold exchange standard because the key currency, the dol-
lar, was convertible into gold for official holders of dollars (such as central
banks and treasuries).