There can be little doubt that the presentation of the British formula for the creation of international liquidity on a truly large scale constituted the turning point in the crisis initiated by Mr Nixon’s measures. In his statement on 15 August 1971 Mr Nixon himself hinted at the need for a fundamental revision of the international monetary system, but he did not indicate the nature of the reform he had in mind. There had been much vague talk about reforms involving an expansion of the scope of SDRs long before the IMF meeting. But it was left to Mr Barber to indicate the broad outlines of a concrete and, on the face of it, feasible proposal which might meet American requirements and which might conceivably be found acceptable also by the other leading nations.
KeywordsCentral Bank Foreign Exchange Market International Liquidity International Monetary System Special Draw
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