Target Zones for Exchange Rates?

In recent years, growing dissatisfaction with the levels and the volatility of dollar exchange rates has led to calls for greater coordination of economic policies among nations and for an investigation into alternative exchange-rate systems. A number of economists and policymakers, for example, have advocated limiting the fluctuations of the dollar with a target-zone arrangement for exchange rates. Under such a proposal, countries would establish central exchange rates values for their currencies and would keep the actual exchange rates within a specific margin of the central values.