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IMF economists work closely with member countries on a variety of issues. Their unique perspective on country experiences and best practices on global macroeconomic issues are often shared in the form of books on diverse topics such as cross-country comparisons, capacity building, macroeconomic policy, financial integration, and globalization.

Title Page

THE INTERNATIONAL MONETARY FUND 1966–1971

The System Under Stress

VOLUME I: Narrative

By

Margaret Garritsen de Vries

INTERNATIONAL MONETARY FUND

WASHINGTON, D. C.

1976

Copyright

© 1986 International Monetary Fund

ISBN 0-939934-09-4 (v.I)

ISBN 0-939934-11-6 (set)

De Vries, Margaret Garritsen, 1922–

The International Monetary Fund, 1966–1971: the system under stress. Washington, D.C., International Monetary Fund, 1976.

2 v.

Sequel to The International Monetary Fund, 1945–1965: twenty years of international monetary cooperation, by J. K. Horsefield and others, published by the Fund in 1969.

CONTENTS: v.I, Narrative, by Margaret Garritsen de Vries.—v.2, Documents, edited by Margaret Garritsen de Vries.

1. International Monetary Fund. 2. International finance. 3. International liquidity. 4. Special drawing rights. 5. Foreign exchange. I. Title.

Foreword

This history of the International Monetary Fund for the years 1966 through 1971 in two volumes is a sequel to three earlier volumes, which recounted the origins of the Fund and covered the first twenty years of its existence, from 1945 to 1965.

The six years now reviewed were momentous ones in international monetary relationships, and therefore for the Fund. In this period, the first amendment of the Articles of Agreement took place when the Fund was entrusted with authority for creation of a new reserve asset, the special drawing right. There was also a substantially increased use of the Fund’s resources, accompanied by a sizable increase in members’ quotas and by important changes in the Fund’s policies governing the use of its financial resources. In addition, the Fund endeavored to serve an enlarged membership better by undertaking a number of new responsibilities and activities, primarily in the fields of technical assistance and training.

Outstanding as were the foregoing developments, however, it was the emergence of severe crises concerning gold and exchange rates from 1967/68 onward that catapulted international monetary events to the forefront of world attention and presented problems and challenges to the world’s economic and financial authorities that were the most difficult since the inception of the Fund.

The Fund’s role in all these events is described in Volume I, Narrative. Volume II reproduces the most important documents published by the Fund from 1966 until the end of 1971 and makes available for the first time seven draft outlines for reserve-creating schemes that were prepared in the Fund as part of the process by which special drawing rights were established.

With the advent of the SDR, the period reviewed may in some respects be seen as a special high point in the Fund’s history. The period was, however, also marked by a series of monetary crises that culminated in the collapse of the Bretton Woods system, as described in the closing chapters of Volume I. Subsequently, there were discussions and actions pertinent to reforming the monetary system which are, indeed, still going on. Many of the problems for which solutions have been sought in the years after 1971 thus originated in the period described here. Hence, in publishing these volumes, the Fund hopes to promote understanding of its present, as well as of its past, work.

This history has been written by Margaret Garritsen de Vries, an economist and the Fund’s Historian, a staff member who has been associated with the Fund since 1946. She has had full access to the Fund’s records and has benefited from comments on the manuscript from her staff colleagues and members of the Executive Board, in both their personal and their official capacities. In these respects, these volumes are, as Pierre-Paul Schweitzer stated in his Foreword to the earlier volumes, “history written from the inside.” At the same time, they are the personal responsibility of the author, and no statement or opinion expressed should be understood as committing the Fund in any way.

December 1976

H. Johannes Witteveen

Managing Director

International Monetary Fund

Contents

  • Foreword

  • Preface to Volume 1

  • Chronology of Principal Events, 1966–71

  • Introduction

  • PART ONE The Birth of SDRs

  • CHAPTER 1: EARLY DISCUSSIONS OF LIQUIDITY (Before 1963)

    • Studies Before Convertibility

    • Aftermath of Convertibility

    • The Fund Adapts Its Policies

    • Proposals for Expanding World Liquidity

    • The Fund’s Reactions to Proposals

  • CHAPTER 2: DEBATE ON LIQUIDITY INTENSIFIED (1963–64)

    • Official Positions Develop

    • Framework for the Fund’s Study of Liquidity

    • The Fund Adjusts Policies on Its Resources

    • General Subject of Liquidity Examined

    • Group of Ten Reports

    • Positions at Tokyo

  • CHAPTER 3: EXPLORING TECHNIQUES FOR RESERVE CREATION (1964–65)

    • Deliberate Reserve Creation Studied

    • Two Possible Techniques for Creating Reserves

    • Studies Accelerated

    • Proposals for CRUs

    • Reactions of Management and Staff to CRU Proposals

    • Ossola Group Report

    • France and United States Take Opposing Positions

    • Managing Director’s Assessment and Action

    • Agreement by Group of Ten on Contingency Planning

  • CHAPTER 4: SEARCH FOR A CONTINGENCY PLAN FOR RESERVE CREATION (1965–66)

    • Economic Circumstances Facilitate Agreement

    • Intensified Discussions by Group of Ten

    • Emphasis on a Limited Group Continues

    • Response of Developing Countries

    • Background to Managing Director’s Proposals

    • Managing Director’s Proposals

    • Universality Accepted by Group of Ten

    • Reasons for Acceptance of Universal Scheme

    • Widening the Discussions

  • CHAPTER 5: PROGRESS TOWARD A PLAN FOR RESERVE CREATION (October 1, 1966–April 15, 1967)

    • Arrangements for Joint Meetings

    • Purpose of Reserve Creation Discussed

    • Form of Deliberately Created Reserves Considered

    • Question of Compulsory Reconstitution

    • Question of Use and Transfer of a New Reserve

    • Financing of Reserve Creation

    • First Joint Meeting

    • Question of Decision Making

    • Second Joint Meeting

    • Aftermath of First and Second Joint Meetings

    • Plans Redrafted

    • Attempts to Gain Momentum

  • CHAPTER 6: SDRs TAKE SHAPE (April 16–September 30, 1967)

    • Developments in World Reserves

    • Third Joint Meeting

    • Decision to Draft a Tentative Outline

    • Rules for Use and Transfer

    • Fourth Joint Meeting

    • Drafting a Final Outline

    • Outline Agreed by Group of Ten

    • Approval of Outline by Board of Governors

    • Only an Outline

  • CHAPTER 7: AMENDING THE ARTICLES (1967–68)

    • The Fund’s Task

    • Defining Currency Convertible in Fact

    • Stockholm Meeting of the Group of Ten

    • Decision Taken and Resolution Adopted

  • CHAPTER 8: SDRs ENTER INTO FORCE (1968–69)

    • Amendment of By-Laws and Rules and Regulations

    • Two Separate Accounts

    • Allocations and Cancellations of SDRs

    • Operations and Transactions in SDRs

    • Designation

    • Reconstitution

    • Gold-Value Guarantee

    • Significance of the New Asset

  • CHAPTER 9: HOW SDRs EVOLVED: A SYNOPSIS

  • PART TWO Allocation and First Use of SDRs

  • CHAPTER 10: DECISION TO ALLOCATE SDRs (1969)

    • Circumstances Leading to Activation

    • Staff Preparation

    • Consultations Process Begins

    • Proposal Formulated

    • Approval by Board of Governors

    • A Word in Retrospect

  • CHAPTER 11: PREPARING FOR SDR ALLOCATION (1969)

    • Specifying Currencies Convertible in Fact

    • First Designation Plan

    • Acceptance of SDRs for Charges and Repurchases

    • Exclusion from Monetary Reserve Calculations

  • CHAPTER 12: TWO YEARS OF EXPERIENCE WITH SDRs (1970–71)

    • Allocations Made

    • Disclosing Transactions

    • Transactions Through the General Account

    • Experience with Designation Plans

    • Requirement of Need

    • Total Use of SDRs

    • An Accepted Reserve

  • PART THREE General Resources: New Challenges and Responses

  • CHAPTER 13: CHANGES IN RULES AND PRACTICES

    • An 85 Per Cent Majority for Several Decisions

    • Amendments Governing Use of Resources

    • Amendments Governing Repurchases

    • Interpretation of the Articles

  • CHAPTER 14: COMPENSATORY FINANCING EXTENDED AND LIBERALIZED

    • The Changes of 1966

    • Usage Increases

    • Compensatory Financing Becomes Important

  • CHAPTER 15: FINANCING BUFFER STOCKS

    • Prelude

    • African Members Press for Special Study

    • Report by Staff

    • Views of Executive Directors and Governors

    • Intensified Study

    • A Decision Reached

    • The Decision Implemented

    • Consultations to Include Commodities

  • CHAPTER 16: QUOTAS ENLARGED

    • Growth from 1966 to 1969

    • Fifth General Review Begins

    • Agreement Reached on Fifth General Review

    • New Quotas Become Effective

    • Other Increases in Quotas During 1969–71

    • Policy on Small Quotas

    • Quota Formula to Be Reviewed

  • CHAPTER 17: INCREASES IN DRAWINGS

    • Total Drawings

    • Gold Tranche Drawings

    • Direct Purchases in Credit Tranches

    • Drawings Under Stand-By Arrangements

    • Waivers

    • Currencies Selected: Use of Past Principles

    • Currencies Selected: Additional Developments

    • Special Problems After August 15, 1971

  • CHAPTER 18: CONTINUED EVOLUTION OF STAND-BY ARRANGEMENTS

    • Stand-By Arrangement for United Kingdom, 1967

    • Terms of Stand-By Arrangements Reviewed

    • Stand-By Arrangement for United Kingdom, 1969

    • Dramatic Improvement in U.K. Economic Situation

    • United Kingdom Repays the Fund

    • Stand-By Arrangement for France

    • Rapid Recovery of French Economy

    • Stand-By Arrangements for Developing Members

    • Financial Programming—A Major Activity

    • Programming Methodology Under Study

    • Expediting Purchases Under Stand-By Arrangements

  • CHAPTER 19: OTHER DEVELOPMENTS IN THE FUND’S FINANCES

    • General Arrangements to Borrow Renewed

    • Activation of General Arrangements to Borrow

    • Bilateral Borrowing

    • Review of Charges

    • Repurchases

    • Investment of the Fund’s Assets

    • The Fund’s Budget

    • Net Income Is Distributed

    • Turnabout in Financial Operations

  • PART FOUR Gold

  • CHAPTER 20: GOLD: NEW PROBLEMS, NEW POLICIES

    • Calm Before the Storm: 1965

    • Gold Pool Abolished

    • Two-Tier Gold Market

    • South African Gold: The Problem

    • Fund Gold Purchases Begin

    • Fund Sells Gold

    • General Deposits of Gold

    • Gold Subsidies and Transactions Service

    • Basic Questions About Gold Develop

  • PART FIVE Exchange Rates in Crisis

  • CHAPTER 21: DEVALUATION OF STERLING (1967)

    • Prelude to Devaluation

    • Notification to Fund

    • The Fund’s Deliberations

    • Limited Devaluations of Other Currencies

    • U.K. Economy Fails to Respond

    • Evaluation of Improvement in U.K. Economy

    • Sterling Devaluation as Seen at the Time

  • CHAPTER 22: ADJUSTMENTS IN RATES FOR FRENCH FRANC AND DEUTSCHE MARK (1969)

    • Prelude to Devaluation of Franc

    • Meeting at Bonn

    • Decision to Devalue the Franc

    • The Fund’s Deliberations on Franc Devaluation

    • French Franc Area Alters Its Rates

    • Sequel to Devaluation of Franc

    • Deutsche Mark Is Revalued

    • Difficulties After Revaluation of Deutsche Mark

  • CHAPTER 23: OTHER ADJUSTMENTS IN EXCHANGE RATES (1966–70)

    • Initial Par Values

    • Changes in Monetary Units

    • Devaluation of Indian Rupee

    • Devaluation by Ghana

    • Devaluation by Finland

    • Devaluation by Iceland

    • Devaluation by Turkey

    • Devaluation by Ecuador

    • Canada Returns to a Floating Rate

    • Canada Continues to Have a Floating Rate

  • CHAPTER 24: EXAMINING THE EXCHANGE RATE MECHANISM (1969–70)

    • U.S. Deficit

    • Tighter U.S. Measures in 1968

    • Discussions of U.S. Deficit

    • Countries in Surplus

    • The Problem of Adjustment

    • Increasingly Disruptive Capital Flows

    • Initial Review of Exchange Rate Mechanism

    • Governors’ Positions

    • Continued Review by Executive Directors

    • Agreement by Executive Directors

    • Reactions of Governors

    • After Copenhagen

  • CHAPTER 25: COLLAPSE OF THE PAR VALUE SYSTEM (January 1–August 15, 1971)

    • Par Value and Other Adjustments

    • Fresh Disturbances in European Markets

    • New Measures by European Countries

    • Difficult Issues Arise

    • United States Suspends Convertibility

    • Implications for the Fund

  • CHAPTER 26: ROAD TO THE SMITHSONIAN AGREEMENT (August 16–December 18, 1971)

    • Fund’s Immediate Response to U.S. Announcement

    • Exchange Rate Realignment—A Sensitive Issue

    • Mr. Schweitzer’s Concerns and Responses

    • Variety of Exchange Rates Introduced

    • Group of Ten Meetings

    • 1971 Annual Meeting

    • After the 1971 Annual Meeting

    • Group of Ten Meets Again

    • Developing Countries Present Their Views

    • Smithsonian Agreement

  • CHAPTER 27: A TEMPORARY REGIME ESTABLISHED (December 18–31, 1971)

    • Consideration of Central Rates

    • Decision Adopted

    • Rates Communicated

    • The Fund’s Operations Restored

    • World Payments Situation at the End of 1971

    • International Monetary Reform—the Next Step

    • A Backward Glance

  • PART SIX The Fund as an Institution

  • CHAPTER 28: GROWTH OF RESPONSIBILITIES

    • Increases in Membership

    • Continued Importance of Annual Consultations

    • Trends in Exchange Restrictions

    • Developments in Annual Consultations

    • Technical Assistance Evolves into a Large Program

    • Technical Assistance in Central Banking

    • Technical Assistance in Fiscal Affairs

    • Technical Assistance in Statistics

    • General Technical Assistance

    • Special Program for Zaïre Ended

    • Growth of IMF Institute

  • CHAPTER 29: FURTHER EXPANSION OF ACTIVITIES

    • Payments Arrears Defined as Restrictions

    • Greater Concern with External Debt Service

    • External Debt of Ghana

    • External Debt: A Long-Term Problem

    • The Fund as a Center for Information

    • Relations with UN, GATT, and OECD

    • Relations with Other Organizations

    • Cooperation with the World Bank

  • CHAPTER 30: COMPLEXITIES IN THE PROCESS OF POLICYMAKING

    • Membership: Formation of Groups

    • Board of Governors: Growth in Size and Powers

    • Executive Board: Increasing Functions

    • Executive Board: Changes in Composition

    • Executive Board: Composition at End of 1971

    • Executive Board: Size and Structure

    • Managing Director

    • Deputy Managing Director

    • Staff: Organization and Expansion

    • Staff: Teamwork, Anonymity, and Long Service

    • New Headquarters Building

    • The Fund as 1971 Ended

  • APPENDICES

  • APPENDIX A-1: Appointed Executive Directors and Their Alternates, Article XII, Section 3(b)(i)

  • APPENDIX A-2: Elected Executive Directors and Their Alternates, Article XII, Section 3(b)(iii)

  • APPENDIX A-3: Elected Executive Directors and Their Alternates, Article XII, Section 3(b)(iv)

  • APPENDIX B: Management and Senior Staff

  • APPENDIX C: Organizational Chart

  • TABLES

  • 1. Participants and Observers at First and Second Joint Meetings of Executive Directors of Fund and Deputies of Group of Ten, 1966–67

  • 2. Participants and Observers at Third and Fourth Joint Meetings of Executive Directors of Fund and Deputies of Group of Ten, 1967

  • 3. Allocations of Special Drawing Rights, 1970–72

  • 4. Purchases and Repurchases Under Decision on Compensatory Financing of Export Fluctuations, February 27, 1963–April 30, 1972

  • 5. Quotas of Members on Selected Dates

  • 6. Drawings from the Fund, 1966–71

  • 7. Stand-By Arrangements Approved, January 1, 1966–December 31, 1971

  • 8. Drawings and Repurchases by Currency, Calendar Years, 1966–71

  • 9. Borrowing by Fund Under General Arrangements to Borrow, 1966–71

  • 10. Financing of Drawings by France and United Kingdom Involving Activation of General Arrangements to Borrow, 1966–71

  • 11. Charges on Fund’s Holdings of Member’s Currency in Excess of Member’s Quota Resulting from Transactions Effected from May 1, 1963 to December 31, 1971

  • 12. Total Purchases and Repurchases by Members, Fiscal Years Ended April 30, 1966–71

  • 13. Repurchases of Currencies, Fiscal Years Ended April 30, 1966–71

  • 14. Income and Expenditure of Fund, Fiscal Years Ended April 30, 1966–71

  • 15. Changes in Par Values, November 18–27, 1967

  • 16. Initial Par Values Established, 1966–70

  • 17. Exchange Rate Relationships Resulting from Smithsonian Agreement, December 18, 1971

  • 18. Par Values Maintained Unchanged as of December 31, 1971

  • 19. Par Values Changed, December 18–31, 1971

  • 20. Central Rates Established, December 18–31, 1971

  • Index

  • Publications Cited

Illustrations

  • Pierre-Paul Schweitzer, Chairman of Executive Board and Managing Director

  • Meeting of 1966–68 Executive Board

  • Museum of Modern Art, Rio de Janeiro, Site of 1967 Annual Meeting

  • President Lyndon B. Johnson, Pierre-Paul Schweitzer, Managing Director, and Henry H. Fowler, Governor for United States

  • Meeting of 1968–70 Executive Board

  • Meeting of 1970–72 Executive Board

  • Joint Session of Boards of Governors of Fund and World Bank at an Annual Meeting

  • Frank A. Southard, Jr., Deputy Managing Director

  • Headquarters, Washington, 1973

Preface to Volume I

The history of the Fund for the six years 1966 through 1971 differs in many ways from that of the Fund’s first twenty years. Innovative changes were introduced into the original design of the Bretton Woods system. Yet, notwithstanding these changes, such severe stress developed in that system as to cause its eventual collapse. Several of the monetary and financial questions discussed in the Fund in the period reviewed here were new to the international scene and involved highly technical matters with widespread implications for the monetary system. These questions engaged the interest of economists and monetary specialists to an extent that had not occurred since the discussions attending the birth of the Fund in 1944.

Moreover, in the second half of the 1960s, the Fund’s activities and decisions became increasingly interwoven with discussions in and decisions by other forums, most notably the Group of Ten but also the European Economic Community and groups formed by developing countries. Also, to an extent greater than in the preceding twenty years, in the six years reviewed here events taking place in the Fund were directly and quickly influenced by economic and monetary developments taking place in the world as a whole and in individual member countries, especially as one monetary crisis after another erupted. Literally, the events of yesterday bore heavily on today’s discussions and decisions. This situation was quite unlike that of the Bretton Woods discussions, in which the circumstances of war were, in a sense, ignored while the participants planned for a world yet to come into being after World War II. Furthermore, the questions involved in 1966–71 were of such consequence as to concern officials at the very highest political levels; and the circumstances were conducive to the public expression of views on these questions while negotiations had not yet been completed.

These factors have necessarily influenced my writing. I have organized this history around what I see as the four main areas in which the Fund’s further evolution as an international monetary organization took place: the establishment of special drawing rights (SDRs); the unprecedented recourse by members to the financial resources of the Fund and important changes in policies affecting the use of those resources; the emergence of severe disturbances in gold and exchange markets that brought to an end the international monetary system created at Bretton Woods; and, with the growth of membership, the gradual assumption by the Fund of new responsibilities and activities. In my descriptions, I have tried especially to bring out the major issues that were involved insofar as the Fund was concerned and the reasoning that underlay the Fund’s actions and decisions. As in the volumes relating the Fund’s history for earlier years, the primary focus is on the Executive Board and the principal source of information has been the minutes of the Executive Board’s meetings and informal sessions. However, to a considerably greater extent than was done in the earlier volumes, I have included material describing the staff’s analyses, the considerations behind several of the decisions of the Managing Director, the nature of economic and monetary developments influencing negotiations, and related discussions and decisions taking place outside the Fund. This material has all been based on the Fund’s documents and records.

My aim has been to describe the Fund’s actions objectively. Since this is a history of events that are relatively near in time, there are instances, particularly in the final chapters, where I have regarded my task as mainly reportorial, and where I have refrained from analysis or interpretation.

Finally, some material has been included so that this history of the Fund for the years 1966–71 may be fairly self-contained, that is, so that readers do not necessarily have to have read the history of the Fund for earlier years.

A few techniques for identifying officials in a relatively simple way have been adopted. Those appointed by member countries as Governors of the Fund and of the World Bank have been referred to in these capacities, especially when they attended Annual Meetings, rather than in their capacities as officials of their home countries, usually Ministers of Finance or Governors of central banks. The Managing Director, who is also the Chairman of the Executive Board, is referred to as the Managing Director, thus avoiding the need to distinguish in which capacity he may have been acting at the time. The full name of an Executive Director and, as an approximation to the identification of his constituency, his country of nationality are given the first time he is mentioned; his country of nationality is repeated the first time he is mentioned in each of the subsequent parts into which the volume is divided. A similar course has been followed for Alternate Executive Directors, each of whom is also linked, on the first occasion he is mentioned, to the Executive Director who appointed him. Thereafter surnames only are used. The first mention of an Executive Director or of an Alternate Executive Director may come in a series of names and, consequently, there is at times a mixture of given names and surnames, especially in the later parts of the volume. The procedure may, therefore, be confusing for those reading only certain parts, but any alternative seemed to be even more complicated and repetitive of given names.

There is another point concerning the members of the Executive Board to which the reader should be alerted. During the period reviewed here, changes were made in appointed Executive Directors and, following the customary biennial elections of Executive Directors, newly elected Directors took office on November 1 of 1966, 1968, and 1970. For ease of exposition, changes in Executive Directors have not been spelled out in Parts One through Five. A brief description of the changes in the composition of the Executive Board from 1966 through 1971 is given in Part Six (Chapter 30). A complete listing of the Executive Directors and their Alternates and of the countries appointing or electing them and the years in which they served is given in Appendix A–1, Appendix A–2, and Appendix A–3.

The names of some member countries were changed in the period reviewed here. However, the names in effect on December 31, 1971 have been used throughout the volume.

I am very much indebted to numerous colleagues both on the staff and on the Executive Board for their many comments. Unfortunately, I cannot mention all of their names here. I have especially warm feelings for several who have been exceptionally close to this history of the Fund. Frank A. Southard, Jr., Deputy Managing Director from November 1, 1962 until March 1, 1974, made several suggestions and read most of the manuscript; his extensive personal files and notes of meetings at which he presided or in which he took part provided me with much essential information and with background for understanding the formal documents. Joseph Gold, the General Counsel, and J. J. Polak, the Economic Counsellor, have answered queries, provided explanations and interpretations, and read and commented on draft copy, thereby enabling me to make more accurate and more complete than would otherwise have been possible descriptions of many events in which they participated. Fred Hirsch’s comments on an early draft of the chapters on SDRs prompted me to make extensive revisions. J. Keith Horsefield, responsible for the history of the Fund for 1945 to 1965, read this sequel and made many suggestions. Philine Lachman read the manuscript with a lawyer’s eye.

Marie C. Stark, Archivist, and her assistant, Milton K. Chamberlain, sorted out the materials that I needed from among the Fund’s voluminous records and documents; their intimate familiarity with these records and documents made my hours of research most fruitful. Martin L. Loftus and Charles O. Olsen, then Librarian and Assistant Librarian, respectively, of the Joint Bank-Fund Library, and their staff helped me to keep abreast of related current literature.

Helen G. (Becky) Burrows was my assistant throughout most of the project, typing drafts, preparing statistical tables and Appendices, and making editorial suggestions; in all these capacities she was invaluable. Faye L. Olin performed secretarial and editorial duties in the later stages of the project.

Jane B. Evensen, Editor, assisted by Jennie Lee Carter, painstakingly edited the final manuscript and saw the volumes through to publication. Surinder Nath worked on the index. The Graphics Section helped in several ways with the production process; Joseph J. Diana assisted with photographs, and Toshiko Habir designed the dust jacket.

Needless to say, any shortcomings, errors, or blemishes that remain are my responsibility.

December 1976

M. G. de V.

Chronology of Principal Events, 1966–711

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1

Includes all changes in par values before August 15, 1971.

Frontmatter Page

THE INTERNATIONAL MONETARY FUND

1966–1971

Volume I: Narrative

Frontmatter Page

“If we consider the international monetary system not only as a structure, hut also, as I believe we must, as the way in which that structure is used, it is quite evident that we do not have the same system now as we had five, let alone ten, years ago.”

—Pierre-Paul Schweitzer, Managing Director, addressing the International Financial Conference in Geneva on May 19, 1970.

Introduction

The Six Years from January 1, 1966 to December 31, 1971 were extremely important ones in the history of the International Monetary Fund. They were filled with turbulence and fundamental change in the international monetary system, all of which directly affected the functions and activities of the Fund. At the beginning of this period—in January 1966—it was already apparent that the world economic environment was changing radically. Among other things, short-term flows of capital were becoming larger and more difficult to manage by the methods that had been devised in the early 1960s. Moreover, concern that the supply of liquidity in the monetary system might prove insufficient had intensified, and monetary officials were in the midst of a debate on the need to introduce some innovative mechanism for deliberately creating reserves to augment that liquidity. Eventually, in 1969, special drawing rights (SDRs) were established in the Fund. The advent of SDRs was certainly the zenith of the Fund’s first twenty-five years. And later, when full-scale reform of the international monetary system was being negotiated, many monetary experts were to look upon their establishment as the first part of a general monetary reform.

The years 1966 through 1971 featured, however, not only the creation of SDRs but also the onset of the disturbances that caused the breakdown of the Bretton Woods system and the need for discussions on monetary reform.

Even before the first SDRs could be allocated, the international monetary system was being subjected to stresses and strains more severe than any experienced since World War II. The imbalance in international payments and the flows of short-term capital from one money center to another that had emerged in the late 1950s and the early 1960s became steadily greater, and the resulting problems became increasingly harder to solve, or even to alleviate. Consequently, exchange crises became a regular feature of the international scene, especially after November 1967. News that traditionally had been relegated to the financial pages made front-page headlines when, in the next three and a half years, sterling was devalued, a single official price for gold was abandoned and a two-tier gold market set up, the French franc was devalued, the deutsche mark was revalued, and floating exchange rates for the Canadian dollar, the deutsche mark, and the Netherlands guilder were introduced. Then, on August 15, 1971, came the suspension by the United States of convertibility into gold of officially held dollars. As a result, two basic tenets of the Fund’s Articles of Agreement—the system of agreed par values and the convertibility of dollars into gold—were no longer operative. The system designed at Bretton Woods a quarter of a century before had collapsed. The Ministers and Central Bank Governors of the Group of Ten, meeting at the Smithsonian Institution in Washington in December 1971, reached agreement on the realignment of the currencies of their countries, and subsequently the Fund’s Executive Board adopted a decision on a temporary regime of central rates and wider exchange rate margins. The crisis was so profound, however, that virtually everyone recognized the urgent need for a thoroughgoing reform of the international monetary system.

Thus this period in the Fund’s history, one of trying to hold together the Bretton Woods system through severe stresses and strains, was distinctly different from either the preceding twenty years or the years following 1971. In the two decades 1945–65 there had been tremendous progress toward the attainment of the goals for which the Fund had been established. Reconstruction of the economies devastated by World War II had been accomplished, and the world had benefited from a signal expansion of international trade and investment. Most members of the Fund had achieved agreed par values or, at least, fixed exchange rates. Currency convertibility had been restored. Restrictions on current international payments were far fewer than they had been for decades, and even controls on capital, permitted by the Fund’s Articles of Agreement, had been reduced much more than had been thought likely. The International Monetary Fund had become a successful instrument for international cooperation and consultation in the monetary and financial fields.1 The years immediately after 1971 formed another epoch, one characterized primarily by a very ambitious attempt to achieve a multifaceted reconstruction of the international monetary system.

Scope and Coverage of this Narrative

At the outset of the period 1966–71 the world’s monetary officials were deliberating the problem of international liquidity. They had been discussing this problem for several years, but they were by no means agreed that the supply of liquidity in the international monetary system was actually inadequate or that unusual new arrangements for creating liquidity were necessary. Consensus on any particular mechanism for deliberate creation of reserves was even more remote. It was agreed only that it was important to formulate a plan for creating reserves should the need arise in the future. In the next few years continuous discussion took place, inside and outside the Fund, both about issues and about particular proposals, until August 1969 when the facility for special drawing rights (SDRs) became a part of the structure of the Fund.

The establishment of SDRs was, without doubt, the most striking achievement of the Fund in the years 1966–71. Hence, after a description (in Chapters 1, 2, and 3 and a part of Chapter 4) of what transpired with regard to international liquidity before 1966, the rest of Part One and all of Part Two of this volume are devoted to tracing the evolution of SDRs and the first two years of experience with them.

The earlier history of the Fund discussed at some length the subject of the adequacy of the world’s reserves and the two relevant Fund reports issued during the 1950s, but described only briefly the stirring of concern about international liquidity and the Fund’s attention to it, through 1965, as reflected in the Annual Reports of the Executive Directors and the Annual Meetings of the Board of Governors. In this volume, therefore, only a few paragraphs are devoted to the events of the 1950s, but developments from 1960 through 1965 are treated more fully. Chapter 1 describes what happened in the field of international liquidity before 1963. Following the pattern of Volume I, Chronicle, of the earlier history, Chapters 28 of the present volume, which deal with the birth of SDRs, trace the events in 12-month intervals from one Annual Meeting to the next; the Annual Meetings usually brought to a head the debates and negotiations of the preceding year, and in nearly every year the Board of Governors took actions that helped to resolve the impasses that had been blocking further progress. The chapters on other topics are not so arranged, but cover time periods suitable to the topic.

Part Three examines the developments in 1966–71 that pertain to the use of the Fund’s regular resources, which were placed in a General Account after the introduction of SDRs. The economic and financial circumstances of the late 1960s and early 1970s presented several challenges to the Fund with respect to the use of its general resources, and the Fund responded in a number of ways. Changes were made in the original provisions of the Articles of Agreement governing use of resources and repurchases (Chapter 13). The compensatory financing facility, set up in February 1963 to give assistance to primary producing members experiencing temporary shortfalls in their export earnings, was extended and liberalized, and for the first time many countries began to make drawings for this purpose (Chapter 14). Developing countries also sought assistance from the Fund and the World Bank on the problem of stabilizing primary product prices, and after considerable study the Fund introduced a facility for financing buffer stocks (Chapter 15). To meet the unprecedented recourse to the Fund’s resources by both industrial and developing countries, members’ quotas in the Fund were enlarged, particularly by a third round of general quota increases (Chapter 16). Drawings from the Fund were significantly higher than in any other period since the Fund commenced operations in 1947 (Chapter 17).

Most drawings took place under stand-by arrangements. Because of the expanded use of this instrument, the Executive Board reviewed the Fund’s policy on the use of its resources under stand-by arrangements and adopted guidelines to ensure uniform and equitable treatment for all members. Financial programming associated with stand-by arrangements became one of the Fund’s major activities. These developments, together with some description of the stand-by arrangements agreed with two industrial and three developing members and the related economic circumstances, form the subject of Chapter 18. Augmented drawings, as well as other factors, had important ramifications for the Fund’s other financial operations and transactions, such as the charges on drawings, the policies on repurchases, its own budget, the size of its net income, the distribution of some of that income, and the investment of its assets. These developments in the Fund’s other finances are taken up in Chapter 19.

In a period filled with dramatic events, some of the most interesting pertained to gold: there was the breakup of the single market for gold transactions, the introduction of a two-tier market for gold, and new developments in the Fund’s policies toward purchases and sales of gold, including gold from South Africa. These events are discussed in Part Four (Chapter 20).

Consequential as were the foregoing developments, it was the disturbances in exchange markets that presented the most difficulty for the world’s financial authorities. Hence, another major portion of the volume, Part Five, deals with exchange rates. During the years covered here there were a number of important changes in exchange rates. Among the major currencies, there were, first, the devaluation of sterling in November 1967 (described in Chapter 21), and then the devaluation of the French franc in August 1969 and the revaluation of the deutsche mark in October 1969 (described in Chapter 22). There were also devaluations of the Indian rupee (1966), the Ghanaian cedi and the Finnish markka (1967), the Icelandic króna (1968), and the Turkish lira and the Ecuadoran sucre (1970). Also in 1970 Canada reintroduced a fluctuating rate. These developments, together with a description of the initial par values established and the new monetary units introduced from 1966 to 1970, are covered in Chapter 23.

Recurrent crises in exchange markets led to calls for reform of the international monetary system, particularly to proposals for changing the par value system. Hence, international monetary officials had to direct their attention to the broad question: should the mechanism by which exchange rates were adjusted be altered, and if so, how? Chapter 24 describes the review of the mechanism of exchange rate adjustment that the Executive Directors undertook in 1969 and 1970. In 1971 there occurred events in the field of exchange rates that were even more reverberating than those that had taken place earlier, and the system of par values was suspended for what was considered to be a temporary period. These events are set forth in Chapters 25, 26, and 27. Chapter 25 deals with the events from January 1 through August 15, 1971 that culminated in the suspension by the United States of the convertibility of officially held dollars into gold. Chapter 26 describes at some length the difficult negotiations preceding the Smithsonian agreement of December 1971, and Chapter 27 explains the temporary regime of central rates and wider margins that the Fund thereupon established.

Finally, Part Six (Chapters 2830) presents an overview of how the Fund grew and changed as an institution during the six years ended with 1971. The Fund had to assume new responsibilities and functions as the world of international monetary and financial affairs expanded and became more complex. Consultations with members were expanded, technical assistance to members became much more extensive, new responsibilities were assumed with regard to external debt negotiations of members, and the Fund became a center for the collection and dissemination of information on economic and financial problems.

1

The story of the Fund’s genesis and of its activities to the end of 1965 has been related at length in The International Monetary Fund, 1945–1965; Twenty Years of International Monetary Cooperation: Vol. I, Chronicle, by J. Keith Horsefield; Vol. II, Analysis, by Margaret G. de Vries and J. Keith Horsefield with the collaboration of Joseph Gold, Mary H. Gumbart, Gertrud Lovasy, and Emil G. Spitzer and edited by J. Keith Horsefield; Vol. III, Documents, edited by J. Keith Horsefield (Washington, 1969). Hereinafter cited as History, 1945–65.

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The System Under Stress Volume I: Narrative
  • Adekunle, Joseph O.The Demand for Money: Evidence from Developed and Less Developed Economies,Staff Papers, Vol. 15 (1968), pp. 22066: 367

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  • Altman, Oscar L.Euro-Dollars: Some Further Comments,Staff Papers, Vol. 12 (1965), pp. 116: 497

  • Altman, Oscar L.Foreign Markets for Dollars, Sterling, and Other Currencies,Staff Papers, Vol. 8 (1960–61), pp. 31352: 497

  • Altman, Oscar L.The Management of International Liquidity,Staff Papers, Vol. 11 (1964), pp. 21647: 34

  • Altman, Oscar L.Professor Triffin on International Liquidity and the Role of the Fund,Staff Papers, Vol. 8 (1960–61), pp. 15191: 22

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  • Altman, Oscar L.Quotas in the International Monetary Fund,Staff Papers, Vol. 5 (1956–57), pp. 12950: 291

  • Altman, Oscar L.Recent Developments in Foreign Markets for Dollars and Other Currencies,Staff Papers, Vol. 10 (1963), pp. 4896: 497

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  • Annual Report, 19: see International Monetary Fund. Annual Report of the Executive Directors …

  • Annual Report on Exchange Restrictions: see International Monetary Fund

  • Approaches to Greater Flexibility of Exchange Rates: The Bürgenstock Papers, arranged by C. Fred Bergsten, George N. Halm, Fritz Machlup, and Robert V. Roosa, and edited by George N. Halm (Princeton, 1970): 483

  • Argy, Victor.The Impact of Monetary Policy on Expenditure with Particular Reference to the United Kingdom,Staff Papers, Vol. 16 (1969), pp. 43688: 367

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  • Argy, Victor.The Role of Money in Economic Activity: Some Results for 17 Developed Countries,Staff Papers, Vol. 17 (1970), pp. 52762: 367 See also Polak, J. J., and Victor Argy

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  • Armington, Paul S.Adjustment of Trade Balances: Some Experiments with a Model of Trade Among Many Countries,Staff Papers, Vol. 17 (1970), pp. 488526: 537

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  • Armington, Paul S.The Geographic Pattern of Trade and the Effects of Price Changes,Staff Papers, Vol. 16 (1969), pp. 179201: 537

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  • Armington, Paul S.A Theory of Demand for Products Distinguished by Place of Production,Staff Papers, Vol. 16 (1969), pp. 15978: 537

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  • Artus, Jacques R.The Behavior of Export Prices for Manufactures,Staff Papers, Vol. 21 (1974), pp. 583604: 445

  • Artus, Jacques R.The Effect of Revaluation on the Foreign Travel Balance of Germany,Staff Papers, Vol. 17 (1970), pp. 60219: 463

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  • Artus, Jacques R.The 1967 Devaluation of the Pound Sterling,Staff Papers, Vol. 22 (1975), pp. 595640: 445

  • Artus, Jacques R., and Rudolf R. Rhomberg.A Multilateral Exchange Rate Model,Staff Papers, Vol. 20 (1973), pp. 591611: 537

  • Bank for International Settlements. Annual Reports: 497

  • Bell, Geoffrey. The Euro-Dollar Market and the International Financial System (London, 1973): 498

  • Bernstein, Edward M.The Adequacy of United States Gold Reserves,American Economic Review (Papers and Proceedings of the Seventy-Third Annual Meeting of the American Economic Association), Vol. 51 (1961), pp. 43946: 20

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  • Bernstein, Edward M.The Dollar Is the Problem of the International Monetary System,Quarterly Review and Investment Survey, Model, Roland & Co. (New York), Second Quarter, 1971, pp. 112: 246

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  • Bernstein, Edward M.Further Evolution of the International Monetary System,Moorgate and Wall Street (London), Summer 1965, pp. 5170: 54

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  • Bernstein, Edward M. “International Effects of U.S. Economic Policy,” in Employment, Growth and Price Levels, U.S. Congress, Joint Economic Committee (Study Paper No. 16), 86th Cong., 2nd sess. (Washington, 1960): 20

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  • Bernstein, Edward M.A Practical Program for International Monetary Reserves,Quarterly Review and Investment Survey, Model, Roland & Co. (New York), Fourth Quarter, 1963, pp. 18: 53

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  • Bernstein, Edward M.Statement: The Problem of International Monetary Reserves,in International Payments Imbalances and Need for Strengthening International Financial Arrangements, U.S. Congress, Joint Economic Committee, Hearings Before the Subcommittee on International Exchange and Payments, 87th Cong., 1st sess., May 16-June 21, 1961 (Washington, 1961), pp. 10737: 20

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  • Bernstein, Edward M.The U.S. Balance of Payments and International Liquidity” (June 18, 1965), “Changes in the International Monetary System” (October 27, 1964), “Two Reports on International Liquidity” (August 19, 1964), and “The Underdeveloped Countries and Monetary Reserves” (March 24, 1965), in Guidelines for International Monetary Reform, U.S. Congress, Joint Economic Committee, Hearings Before the Subcommittee on International Exchange and Payments, 89th Cong., 1st sess. (Washington, 1965), Part 2, Supplement, pp. 23081: 54

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  • Bhagwat, Avinash, and Yusuke Onitsuka.Export-Import Responses to Devaluation: Experience of the Nonindustrial Countries in the 1960s,Staff Papers, Vol. 21 (1974), pp. 41462: 445

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  • Bhatia, Rattan J.Factors Influencing Changes in Money Supply in BCEAO Countries,Staff Papers, Vol. 18 (1971), pp. 38998: 367

  • Bhatia, Rattan J., Gyorgy Szapary, and Brian Quinn.Stabilization Program in Sierra Leone,Staff Papers, Vol. 16 (1969), pp. 50428: 366

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  • Boissonneault, Lorette. See Polak, J. J., and Lorette Boissonneault

  • Bürgenstock Papers: see Approaches to Greater Flexibility of Exchange Rates

  • Chandavarkar, Anand G.Some Aspects of Interest Rate Policies in Less Developed Economies: The Experience of Selected Asian Countries,Staff Papers, Vol. 18 (1971), pp. 48112: 367

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  • CIAP. See International Monetary Reform and Latin America

  • Day, A. C. L.Memorandum of Evidence,in Principal Memoranda of Evidence, [Radcliffe] Committee on the Working of the Monetary System, Vol. 3 (London, 1960): 20

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  • Day, A. C. L.The World’s Payments System,in International Payments Imbalances and Need for Strengthening International Financial Arrangements, U.S. Congress, Joint Economic Committee, Hearings Before the Subcommittee on International Exchange and Payments, 87th Cong., 1st sess., May 16-June 21, 1961 (Washington, 1961), pp. 32530: 20

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  • Deming, Frederick L. Remarks at the Third International Investment Symposium, U.S. Treasury Department, Press Release, July 14, 1966: 97

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  • Deppler, Michael C.Some Evidence on the Effects of Exchange Rate Changes on Trade,Staff Papers, Vol. 21 (1974), pp. 60536: 445

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  • de Grauwe, Paul.The Development of the Euro-Currency Market,Finance and Development, September 1975, pp. 1416: 499

  • de Vries, Margaret G.Exchange Depreciation in Developing Countries,Staff Papers, Vol. 15 (1968), pp. 56078: 305

  • de Vries, Margaret G.Multiple Exchange Rates: Expectations and Experiences,Staff Papers, Vol. 12 (1965), pp. 282313: 359

  • Elson, R. Anthony. See Teigeiro, José D., and R. Anthony Elson

  • Expert Group on International Monetary Issues (Unctad). International Monetary Issues and the Developing Countries (New York, 1965, UN document TD/B/32 and TD/B/C.3/6): 83, 197

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  • Fleming, J. Marcus.Effects of Various Types of Fund Reserve Creation on Fund Liquidity,Staff Papers, Vol. 12 (1965), pp. 16388: 51

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  • Fleming, J. Marcus.The Fund and International Liquidity,Staff Papers, Vol. 11 (1964), pp. 177215: 34

  • Fleming, J. Marcus. Guidelines for Balance-of-Payments Adjustment Under the Par-Value System, Essays in International Finance, No. 67 (Princeton, 1968); reprinted in his Essays in International Economics (London and Cambridge, Massachusetts, 1971), pp. 26895: 501

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  • Fleming, J. Marcus.International Liquidity: Ends and Means,Staff Papers, Vol. 8 (1960–61), pp. 43963: 23

  • Fleming, J. Marcus.The SDR: Some Problems and Possibilities,Staff Papers, Vol. 18 (1971), pp. 2547: 246

  • Fleming, J. Marcus.Use and Acceptance of Reserve Claims,Staff Papers, Vol. 13 (1966), pp. 44352: 94

  • Fowler, Henry H. Speech to Virginia State Bar Association, July 10, 1965, U.S. Treasury Department, Press Release, July 11, 1965, and International Financial News Survey, Vol. 17 (1965), p. 251: 63

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  • Giscard d’Estaing, Valéry. “La politique monétaire internationale de la France,” in Exposés de M. Valéry Giscard d’Estaing, Ministre des Finances et des Affaires Economiques, sur les problèmes monétaires internationaux (Paris, 1965), in Les problèmes monétaires internationaux (Paris, 1965), and in Problèmes Economiques, August 1965: 54

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  • Gold, Joseph.The Amendments,” in History, 1945–1965, Vol. II, Chap. 27: 166

  • Gold, Joseph. Floating Currencies, Gold, and SDRs: Some Recent Legal Developments, IMF Pamphlet Series, No. 19 (Washington, 1976): 533

  • Gold, Joseph. The Fund’s Concepts of Convertibility, IMF Pamphlet Series, No. 14 (Washington, 1971): 168

  • Gold, Joseph.Legal Technique in the Creation of a New International Reserve Asset: Special Drawing Rights and the Amendment of the Articles of Agreement of the International Monetary Fund,Case Western Reserve Journal of International Law, Vol. 1 (Cleveland, 1969), pp. 10523: 152

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  • Gold, Joseph.The Next Stage in the Development of International Monetary Law: The Deliberate Control of Liquidity,American Journal of International Law, Vol. 62 (Washington, 1968), pp. 365402: 161, 166

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  • Gold, Joseph. The Reform of the Fund, IMF Pamphlet Series, No. 12 (Washington, 1969): 166, 253

  • Gold, Joseph. Special Drawing Rights: Character and Use, IMF Pamphlet Series, No. 13, 2nd ed. (Washington, 1970): 166, 178, 188

  • Gold, Joseph. Special Drawing Rights: The Role of Language, IMF Pamphlet Series, No. 15 (Washington, 1971): 153, 154, 166

  • Gold, Joseph. Stand-By Arrangements The Stand-By Arrangements of the International Monetary Fund: A Commentary on Their Formal, Legal, and Financial Aspects (Washington, 1970): 25, 263, 317, 347, 379

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  • Gold, Joseph. Voting and Decisions Voting and Decisions in the International Monetary Fund: An Essay on the Law and Practice of the Fund (Washington, 1972): 616, 621, 625, 631, 632

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  • Group of Seventy-Seven. The Declaration and Principles of the Action Programme of Lima, adopted by the Group of Seventy-Seven at the Second Ministerial Meeting on November 7, 1971: 618

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  • Group of Ten. Communiqué of the Ministers and Governors of the “Group of Ten.” Issued on September 28, 1965, Summary Proceedings, 1965, p. 281: 72

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  • Group of Ten. Communiqué of Ministers and Governors and Report of Deputies ([Frankfurt], 1966): 96, 98

  • Group of Ten. Communiqué of the Ministers and Central Bank Governors of the Group of Ten, July 18, 1967, International Financial News Survey, Vol. 19 (1967), p. 229: 157

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  • Group of Ten. Communiqué of the Ministers and Central Bank Governors of the Group of Ten, December 18, 1971, International Financial News Survey, Vol. 23 (1971), pp. 41718: 554

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  • Group of Ten. Ministerial Statement of the Group of Ten and Annex Prepared by Deputies ([Washington], 1964): 36

  • Group of Ten. Report of the Study Group on the Creation of Reserve Assets (Washington, 1965): 59

  • Group of Ten. Statement Issued on October 2, 1963 by the Secretary of the Treasury of the United States on Behalf of the “Group of 10” Members of the Fund, Summary Proceedings, 1963, pp. 28586: 29

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  • Guenther, Jack D. ‘Indexing’ Versus Discretionary Action—Brazil’s Fight Against Inflation,Finance and Development, September 1975, pp. 2529: 363

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  • Habermeier, Walter. Operations and Transactions in SDRs: The First Basic Period, IMF Pamphlet Series, No. 17 (Washington, 1973): 244

  • Hirsch, Fred.SDRs and the Working of the Gold Exchange Standard,Staff Papers, Vol. 18 (1971), pp. 22153: 246

  • Hodjera, Zoran.International Short-Term Capital Movements: A Survey of Theory and Empirical Analysis,Staff Papers, Vol. 20 (1973), pp. 683740: 499

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  • History, 1945–65 The International Monetary Fund, 1945–1965: Twenty Years of International Monetary Cooperation (Washington, 1969). Vol. I, Chronicle, by J. Keith Horsefield: 4, 11, 12, 14, 15, 17, 21, 33, 143, 168, 313, 343, 385, 432, 578, 588, 593, 603, 606, 621, 626, 633, 636, 650; Vol. II, Analysis, by Margaret G. de Vries and J. Keith Horsefield with the collaboration of Joseph Gold, Mary H. Gumbart, Gertrud Lovasy, and Emil G. Spitzer and edited by J. Keith Horsefield: 4, 166, 167, 168, 253, 262, 284, 313, 317, 343, 409, 432, 439, 473, 477, 576, 607, 616, 626, 632, 636, 640; Vol. III, Documents, edited by J. Keith Horsefield: 4, 11, 12, 19, 33, 188, 262, 313, 382, 423, 603

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  • An International Development Strategy for the Second United Nations Development Decade (New York, 1970, UN document A/C.2/L.1104/Rev. 1): 245

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  • International Monetary Fund. “The Adequacy of Monetary Reserves,Staff Papers, Vol. III (1953–54), pp. 181227, and History, 1945–65, Vol. III, pp. 31148: 11

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  • International Monetary Fund. Annual Report of the Executive Directors for the Fiscal Year Ended April 30, 1961–1972 (Washington, 1961–1972): 1961, 16; 1963, 26, 27; 1964, 34, 35, 41, 46; 1965, 43, 46, 53, 72; 1966, 82, 88, 95; 1967, 139, 204; 1969, 220, 497; 1970, 491, 497; 1971, 419, 497, 520; 1972, 564

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  • International Monetary Fund. Annual Report on Exchange Restrictions, 1972 (Washington, 1972): 575

  • International Monetary Fund. International Financial News Survey: 96, 153, 529, 603 See also references listed by author

  • International Monetary Fund. Establishment of a Facility Based on Special Drawing Rights in the International Monetary Fund and Modifications in the Rules and Practices of the Fund: A Report by the Executive Directors to the Board of Governors Proposing Amendment of the Articles of Agreement (Washington, April 1968): 175, 204

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  • International Monetary Fund. International Reserves and Liquidity (Washington, 1958): 12.

  • International Monetary Fund. Press Release No. 853, August 20, 1971: 533

  • International Monetary Fund. The Problem of Stabilization of Prices of Primary Products: A Joint Staff Study (Part I), International Monetary Fund and International Bank for Reconstruction and Development; Report of the Executive Directors [and] Scope for Action by the Fund (Part II of a Staff Study), International Monetary Fund (Washington, 1969, 2 vols.): 273, 274, 279, 280

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  • International Monetary Fund. A Report to the Board of Governors of the International Monetary Fund Containing the Managing Director’s Proposal on the Allocation of Special Drawing Rights for the First Basic Period (Washington, 1969): 220

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  • International Monetary Fund. The Role of Exchange Rates in the Adjustment of International Payments (Washington, 1970): 484, 512

  • International Monetary Fund. Special Drawing Account: Manual of Procedures [for] Operations and Transactions in Special Drawing Rights (Washington, 1970); and Supplement No. 1, Principles and Procedures for Reconstitution (Washington, 1971); and Revised Supplement No. 1, Principles and Procedures for Reconstitution (Washington, 1973): 231

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  • International Monetary Fund. Staff Papers: see various articles listed by author

  • International Monetary Fund. Summary Proceedings of the … Annual Meeting of the Board of Governors, 19(Washington, 19—): 1960, 16; 1961, 16, 21; 1962, 22, 23, 24; 1963, 26, 28, 29, 30, 31; 1964, 38, 39, 40, 41, 42, 255; 1965, 68, 69, 70, 71, 72, 73, 81, 255; 1966, 102, 103, 271, 593; 1967, 159, 173, 270, 271, 272, 273, 594; 1968, 175, 176, 278, 285, 348, 377, 406, 407, 408, 411, 484, 594; 1969, 177, 178, 187, 189, 212, 219, 220, 267, 281, 282, 285, 294, 304, 409, 417, 459, 503, 504, 594; 1970, 245, 267, 282, 416, 426, 491, 514, 515, 578, 601, 625, 631; 1971, 244, 246, 267, 426, 427, 546, 547, 601, 651

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  • International Reserves: Needs and Availability, Papers and Proceedings of a Seminar at the International Monetary Fund (Washington, 1970): 87, 214, 221

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  • International Monetary Reform and Latin America, report to Inter-American Committee on the Alliance for Progress (ciap), 1966: 85, 198

  • Jacobsson, Per.Fund Report at ECOSOC,International Financial News Survey, Vol. 13 (1961), pp. 12127: 21

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  • Jones, Edgar.The Fund and the GATT,Finance and Development, September 1972, pp. 3033: 607

  • Junz, Helen B., and Rudolf R. Rhomberg,Price Competitiveness in Export Trade Among Industrial Countries,American Economic Review (Papers and Proceedings of the Eighty-Fifth Annual Meeting of the American Economic Association), Vol. 63 (1973), pp. 41218: 445

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  • Khatkhate, Deena R.Analytic Basis of the Working of Monetary Policy in Less Developed Countries,Staff Papers, Vol. 19 (1972), pp. 53358: 368

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  • Machlup, Fritz. Plans for Reform of the International Monetary System, Special Papers in International Economics, No. 3 (Princeton, 1962): 21

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  • Machlup, Fritz. Remaking the International Monetary System: The Rio Agreement and Beyond, Committee for Economic Development, Supplementary Paper No. 24 (Baltimore, 1968): 155

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  • Machlup, Fritz, and Burton G. Malkiel, eds. International Monetary Arrangements—The Problem of Choice: Report on the Deliberations of an International Study Group of 32 Economists (Princeton, 1964): 29, 38

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  • Morgan Guaranty Trust Company, World Financial Markets: 497

  • Le Monde, Paris, February 6 and 13, 1965: 61

  • Onitsuke, Yusuke. See Bhagwat, Avinash, and Yusuke Onitsuke

  • Park, Yung Chul. “Some Current Issues on the Transmission Process of Monetary Policy,Staff Papers, Vol. 19 (1972), pp. 145: 368

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  • Park, Yung Chul. “The Variability of Velocity: An International Comparison,Staff Papers, Vol. 17 (1970), pp. 62037: 367

  • Partners in Development, Report of the Commission on International Development (New York, 1969), p. 220: 613

  • Polak, J. J.Monetary Analysis of Income Formation and Payments Problems,Staff Papers, Vol. 6 (1957–58), pp. 150: 366

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  • Polak, J. J.. Some Reflections on the Nature of Special Drawing Rights, IMF Pamphlet Series, No. 16 (Washington, 1971): 178

  • Polak, J. J., and Victor Argy. “Credit Policy and the Balance of Payments,Staff Papers, Vol. 18 (1971), pp. 124: 366

  • Polak, J. J., and Lorette Boissonneault. “Monetary Analysis of Income and Imports and Its Statistical Application,Staff Papers, Vol. 7 (1959–60), pp. 349415: 366

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  • Posthuma, S.The International Monetary System,Quarterly Review, Banca Nazionale del Lavoro (Rome), September 1963, pp. 23961: 53

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  • Questions and Answers on the International Monetary Fund (June 10, 1944), History, 1945–64, Vol. III, pp. 13682: 188

  • Quinn, Brian. See Bhatia, Rattan J., Gyorgy Szapary, and Brian Quinn

  • [Radcliffe] Committee on the Working of the Monetary System, Report (London, Cmnd. 827, 1959), pp. 241 and 24748: 20

  • Rhomberg, Rudolf R. See Artus, Jacques R., and Rudolf R. Rhomberg; Junz, Helen B., and Rudolf R. Rhomberg

  • Robichek, E. Walter, and Carlos E. Sansón. “The Balance of Payments Performance of Latin America and the Caribbean, 1966–70,Staff Papers, Vol. 19 (1972), pp. 286343: 367

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  • Roosa, Robert V. Monetary Reform for the World Economy, The Elihu Root Lectures, 1964–65 (New York, 1965): 54

  • Sakakibara, Eisuke. “The Euro-Currency Market in Perspective,Finance and Development, September 1975, pp. 1113: 498

  • Sansón, Carlos E. See Robichek, E. Walter, and Carlos E. Sansón

  • Schweitzer, Pierre-Paul. Speech, Ecosoc, February 24, 1966, International Financial News Survey, Vol. 18 (1966), Supplement, pp. 6568: 90

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  • Schweitzer, Pierre-Paul. Speech, Federation of German Industries, April 25, 1966, International Financial News Survey, Vol. 18 (1966), Supplement, pp. 14144: 90, 91

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  • Schweitzer, Pierre-Paul. Speech, Institut d’Etudes Bancaires et Financières, June 2, 1965, International Financial News Survey, Vol. 17 (1965), Supplement, pp. 20916: 64

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  • Schweitzer, Pierre-Paul. Speech, National Foreign Trade Convention, November 16, 1964, International Financial News Survey, Vol. 16 (1964), pp. 44145: 45, 46

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  • Schweitzer, Pierre-Paul. Speech, University School of Economies, Bombay University, September 29, 1964, International Financial News Survey, Vol. 16 (1964), Supplement, pp. 36164: 45

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  • Shonfield, Andrew, ed. International Economic Relations of the Western World, 1959–1971, Vol. 2International Monetary Relations, by Susan Strange (London, 1976), Chap. 6: 498

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  • Southard, Frank A., Jr. Speech, Jno. E. Owens Memorial Foundation, March 27, 1964, International Financial News Survey, Vol. 16 (1964), Supplement, pp. 11316: 44

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  • Staff Papers, International Monetary Fund (Washington): see various articles listed by author

  • Stamp, Maxwell. “Changes in the World’s Payments System,Moorgate and Wall Street (London), Spring 1961, pp. 322: 19

  • Stamp, Maxwell. “The Fund and the Future,Lloyds Bank Review (London), October 1958, pp. 120: 19

  • Stamp, Maxwell. “The Stamp Plan—1962 Version,Moorgate and Wall Street (London), Autumn 1962, pp. 517: 19

  • Summary Proceedings: see International Monetary Fund

  • Szapary, Gyorgy. See Bhatia, Rattan J., Gyorgy Szapary, and Brian Quinn

  • Teigeiro, José D., and R. Anthony Elson. “The Export Promotion System and the Growth of Minor Exports in Colombia,Staff Papers, Vol. 20 (1973), pp. 41970: 359

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  • Triffin, Robert. “An Agreed International Monetary Standard,Annals of International Studies, Alumni Association of the Graduate Institute of International Studies (Geneva, 1970), pp. 21423: 246

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  • Triffin, Robert. “Altman on Triffin: A Rebuttal,Quarterly Review, Banca Nazionale del Lavoro (Rome), March 1961, pp. 3150: 22

  • Triffin, Robert. “A Brief for the Defense,Staff Papers, Vol. 8 (1960–61), pp. 19294: 22

  • Triffin, Robert. Gold and the Dollar Crisis: The Future of Convertibility (New Haven, 1960): 17

  • Triffin, Robert. “The Return to Convertibility: 1926–1931 and 1958—? or, Convertibility and the Morning After,Quarterly Review, Banca Nazionale del Lavoro (Rome), March 1959, pp. 357: 17

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  • Triffin, Robert. “Statement,in Employment, Growth and Price Levels, U.S. Congress, Joint Economic Committee, Hearings, 86th Cong., 1st sess., October 26–30, 1959 (Washington, 1959), Part 9A, pp. 290554: 17

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  • Triffin, Robert. “Tomorrow’s Convertibility: Aims and Means of International Monetary Policy,Quarterly Review, Banca Nazionale del Lavoro (Rome), June 1959, pp. 131200: 17

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  • United Nations. Document A/C.2/270 (1971): 618

  • United Nations. Document A/C.2/L.1104/Rev. 1 (1970): 245

  • United Nations. Document TD/11/RES/19 (1968): 273

  • United Nations. Document TD/143 (1971): 618

  • United Nations. Document TD/B/32 (1965): 83, 197

  • United Nations. Document TD/B/75 (1966): 85

  • United Nations. Document TD/B/C.3/6 (1965): 83, 197

  • United Nations. General Assembly Resolution (International Monetary Reform) 2208 (XXI), December 17, 1966: 84

  • United Nations. A Study of the Capacity of the United Nations Development System (Geneva, 1969), 2 vols.: 605

  • United Nations Conference on Trade and Development (Unctad). Proceedings of the United Nations Conference on Trade and Development, Volume I: Final Act and Report (New York, 1964): 617 See also Expert Group on International Monetary Issues; Group of Seventy-Seven; and United Nations. Documents

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  • U.S. Commission on International Trade and Investment Policy, United States International Economic Policy in an Interdependent World: Report to the President (Washington, 1971): 529, 537

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  • U.S. Congress, Joint Economic Committee. Action Now to Strengthen the U.S. Dollar: Report of the Subcommittee on International Exchange and Payments, 92nd Cong., 1st sess. (Washington, 1971): 528, 537 See also Bernstein, Edward M., Day, A. C. L., and Triffin, Robert

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  • U.S. Department of Commerce. News, May 17, 1971: 527

  • U.S. Department of State. Department of State Bulletin, Vol. 49 (1963) and Vol. 59 (1968): 26, 187

  • The World Bank Since Bretton Woods, by Edward S. Mason and Robert E. Asher (Washington, 1973), Chap. 16: 615

  • World Monetary Reform: Plans and Issues, Herbert G. Grubel, ed. (Stanford, 1963): 21, 22

  • “Zehner-Gruppe und Reform des Weltwàhrungssys-tems,” Auszüge aus Presseartikeln, Deutsche Bundesbank, January 26, 1966, pp. 16: 81

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