This paper reviews the impact of liberalization of intra-European trade in the framework of the Organization for European Economic Cooperation (OEEC). Commercial relations have been most intensive between the industrialized countries of Western Europe, which have carried on a considerable trade with each other both in manufactured products and in such industrial raw materials as they produce in substantial quantities. With the depression of the thirties, international trade declined sharply, and normal trade relations between European countries were disrupted by the widespread tendency to protect domestic markets. OEEC initiatives for the progressive achievement of a single market were taken in various fields. Early experience, however, showed that it would be premature to attempt to promote economic integration through close and effective international planning; and since that time, coordinated action relating to internal financial stability, investments, manpower, has been tentative and fragmentary.
International Monetary Fund. External Relations Dept.
Following are edited remarks by Stanley Fischer, the IMF’s First Deputy Managing Director, at the Argentine Bankers Association Meeting in Buenos Aires on June 25. The full text of his speaking notes is available on the IMF’s website at www.imf.org.
Reserve requirements are widely used by central banks as a means to improve monetary control, an instrument for policy implementation, a source of revenue, and a safeguard of bank liquidity. The effectiveness of reserve requirements in fulfilling these functions is reviewed, and the detailed modalities of their use are examined. Reserve requirements in a sample of developing countries are described.