International Economic Effects

Abstract

The commodities within the scope of the proposed system of conditional currency convertibility, at least initially, would comprise the major, durable basic commodities which the country in question imported. Consequently the functioning of the Commodities Reserve Department of a country’s Central Bank would have a direct effect on the country’s foreign trade. The functioning of one or more CRDs would thus have a range of effects on the international economy. The present chapter examines in turn the major implications for the international economic system of the pattern of operation of one or more CRDs.