Higher Oil Prices and the International Monetary System
In considering the impact of higher oil prices on the international economic order, the main implications for the international commercial system are discussed in Chapter 9, the subject of this chapter being the international monetary system. Whereas the problems discussed in earlier chapters have exacerbated issues already facing the General Agreement on Tariffs and Trade (GATT), necessitating major reforms, the “oil crisis” has not forced changes in the world financial structure. Indeed, if the stresses and strains of inflation had not already forced flexibility on the international monetary system, the rise in oil prices would have wreaked considerable economic havoc in a world still adhering to fixed exchange rates.
KeywordsExchange Rate International Monetary Fund Real Income Fixed Exchange Rate International Monetary System
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Notes and References
- 3.For an early politico-strategic analysis of the Soviet Union’s interest in the Middle East, see the paper by Lionel Gelber (published in 1968 ) in the Atlantic Trade Study Programme, run by the Trade Policy Research Centre, London. The paper was republished as “World Politics and Free Trade”, in Harry G. Johnson, New Trade Strategy for the World Economy (London: Allen & Unwin, 1969).Google Scholar
- 4.It might be noted, however, that an argument of those who, at the turn of the decade, favoured a continuing British military presence in the Persian Gulf was to ensure that no other major power could be in a position to deny oil supplies to Western Europe. See Geoffrey Williams, Natural Alliance for the West, Atlantic Trade Study (London: Trade Policy Research Centre, 1969).Google Scholar