	former treasury official urges currency reforms former treasury official c fred bergsten said a new exchange rate system is needed to replace the fixed and flexible exchange rate systems which he said had not worked i prefer a move to target zones in which the major countries would determine ranges of pct within which they would pledge to hold their exchange rates by direct intervention and as necessary by changes in monetary and other policies bergsten now the director of the institute for international economics said in a statement to a house banking subcommittee the substantial correction of the exchange rate that has occurred since early is enormously welcome and should produce a sizeable reduction in the u s trade deficit this year and next but the imbalance will not fall much below billion dlrs on present policies so much more is needed he said reuter 
