The suspension of the convertibility of officially held dollar balances into gold meant the end of the monetary system based on dollars. Even though the annual meeting of the International Monetary Fund that took place some six weeks after that momentous event went through the gestures of the established IMF routine, there was no getting away from the fact that there had occurred a fundamental change — that 15 August 1971 marked the end of an era in monetary history. That meeting witnessed the enunciation of a plan for a basic reform, put forward by Mr Barber. The favourable if guarded response to his proposals gave some indication of the outlines of the new monetary system that might eventually replace the system which had been in operation since 1946. The ensuing realignment of parities in December 1971 was the first step in that direction.
KeywordsCentral Bank European Economic Community Reserve Currency Unlimited Amount Payment Deficit
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