Comments on Paper by Professor Scitovsky: 1

Abstract

The current year has been marked by great efforts and notable results in the field of international monetary co-operation. A system of defences has been erected which should be of much help in keeping future developments under control. It may be extended in the coming months to cover the problem of sterling balances. In one eventful year, following the depreciation of the pound, we shall be able to inscribe the further build-up of the network of swaps between the Federal Reserve Bank of New York and other central banks to close on 10 billion dollars, the sealing of the leak of monetary gold to the free market, the agreement on the creation of the Special Drawing Rights, two large scale experiences of central bank first-help action in favour of Britain and France, and the putting in place, which is well advanced, of a safety-net for the sterling balances.