A New Currency for Trade Among Developing Countries

Abstract

Policies which would encourage the expansion of trade between developing countries include trade preferences and infrastructural and institutional changes, as well as monetary arrangements. This essay concentrates on monetary arrangements, which provide an essential background to other arrangements — a background which may permit or encourage policies leading to an expansion of trade among developing countries, or one which may inhibit such policies. Producing a satisfactory set of monetary arrangements may therefore play an important role in securing the other policy changes needed, as well as having its own effect on trade flows.

Trade and Development, 2 (Autumn 1980).