The Problems of International Monetary Arrangements
In order to keep the present paper within reasonable bounds, it is proposed to treat this subject in the context of the general economic relationship between North America and Western Europe. Even thus restricted, it covers problems which actually require deeper analysis. It is, however, principally intended to provide food for thought by describing the working of the international monetary system as it is now, some quarter of a century after the Bretton Woods Conference. I shall therefore commence by outlining the fundamental characteristics of the system established at Bretton Woods and continue with a review of the different aspects of its recent development, as regards both the factors determining world liquidity and the composition of reserves. This somewhat didactic distinction is made for ease of exposition. The final comments — even if they do not show how international payments may evolve in the future — will at least emphasise certain underlying factors that should affect their developments.
KeywordsMonetary Policy Central Bank Monetary Authority United States Dollar International Monetary System
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