International Monetary Fund. External Relations Dept.
This paper highlights that 1976 was an important year for the IMF. With the end of 1976, the IMF closed its books on a year of virtually unprecedented activity. It launched the New Year with a US$3.9 billion stand-by arrangement for the United Kingdom, the largest ever made for a member country. The outlook at the beginning of 1977 suggests another busy year ahead for the IMF. The proposed second amendment to the IMF’s Articles of Agreement and the increase in members’ quotas are expected to go into effect before the end of the year.
This paper discusses that the need for financing accounts and for integrated income and financing accounts is to be found in the fact that the income accounts are deficient in two respects as a source of data on the variables in the Keynesian analysis. Investment as measured in the income accounts is not a wholly satisfactory measure of the investment variable of income analysis; and the income accounts omit entirely data on money and other financial assets, which are variables that play roles in the income analysis as necessary as those of saving and investment. The need for financing accounts is the need to measure the strategic variable, money, and to provide data on other financial assets in a form in which the causes and effects of changes in the economy’s preferences for money and other types of financial asset can be analyzed.
A $10 billion three-year Stand-By Arrangement for Indonesia was approved by the IMF’s Executive Board on November 5 [for complete text of Press Release, see pages 354–56]. The financing provided by the IMF will be supported by substantial funding from the World Bank and the Asian Development Bank and other lenders; the total amount of the first line of financial assistance to Indonesia, including the use of part of Indonesia’s own external assets, will be on the order of $23 billion. In addition, a number of other economies—including Australia, China, Hong Kong Special Administrative Region, Japan, Malaysia, Singapore, and the United States—have indicated that, if necessary, they would consider making available supplemental financing to support Indonesia’s program with the IMF.