In an ideal world the formula proposed by Mr Barber would undoubtedly provide a perfect solution of regulating world liquidity. We could trust the Ten Wise Men to determine the amount of SDRs in a way as to ensure stability combined with progress. In our imperfect world, however, the plan is open to objections. As France is the only leading country which is still trying to aim at upholding financial sanity, I sincerely hope that her spokesmen will do their utmost in the course of the negotiations about the plan and in the course of its application to ensure the adoption of adequate safeguards against the misuse of the new facilities.
KeywordsCentral Bank Reserve Currency Reserve Requirement Paper Money Deficit Country
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