Front Matter

Front Matter

James Boughton, Peter Isard, and Michael Mussa
Published Date:
September 1996
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    The Future of the SDR in Light of Changes in the International Financial System

    Proceedings of a seminar held in Washington, D.C. March 18–19, 1996

    Editors • Michael Mussa, James M. Boughton, and Peter Isard

    International Monetary Fund1996

    © 1996 International Monetary Fund

    This book was designed by the IMF Graphics Section.

    Library of Congress Cataloging-in-Publication Data

    Mussa, Michael.

    The future of the SDR in light of changes in the international financial system / Michael Mussa, James M. Boughton, and Peter Isard, editors.

    p. cm.

    “Proceedings of a seminar held in Washington, D.C., March 18-19, 1996.” Includes bibliographical references.

    ISBN 1-55775-604-X

    1. Special drawing rights—Congresses. 2. International finance—Congresses. I. Mussa, Michael. II. Boughton, James M. III. Isard, Peter. HG3898.F87 1996


    96-36220 CIP

    Price: US$27.50

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    The seminar on “The Future of the SDR,” of which this volume records the proceedings, was an outgrowth of the differences of opinion that lay behind the inability of the Interim Committee to reach agreement at its 1994 meeting in Madrid, Spain, on an allocation of SDRs. As the discussion of that proposal proceeded, it became clear that the international community held sharply divided views on the future role of the SDR.

    In such circumstances, it was deemed best to look to outside analysts and experts for help and to take a fundamental look at the whole question. That is why this seminar was convened by the Fund, and that is why the Fund’s staff and management are especially grateful to the outside participants who contributed papers, comments, and discussion at the seminar.

    The seminar was indeed a historic occasion. It was historic not only because it brought together such a distinguished group of experts to discuss a topic of great importance to the IMF and to the world economy, and not only because it opened up the discussion of a major policy issue by bringing together experts and fresh ideas from the academic, government, and financial communities. The occasion also was historic because the seminar commenced fifty years to the day after the inaugural meeting of the Board of Governors of the Fund concluded in Savannah, Georgia. It was that meeting that finally breathed life into the IMF and the World Bank, more than a year and a half after the institutions had been conceived at Bretton Woods, New Hampshire, in July 1944.

    The Savannah meeting of fifty years ago continued the high standard for achievement that had been set at Bretton Woods. Among other decisions, the first Managing Director was selected, the first election of Executive Directors was held, and the Governors agreed to locate the Fund’s headquarters in Washington. John Maynard Keynes had fought hard and bitterly against this location: he wanted to ensure that the Fund would be a technocratic institution, as free as possible from political influence. By the time of the Savannah meeting, Keynes was ill and near death, but he made a much remembered speech about the importance of keeping the infant “Bretton Woods twins” away from those who would want them to “grow up to be politicians.”

    Uncharacteristically, Keynes was somewhat naive in thinking that these institutions could grow up completely devoid of politics. But I believe that they have to a remarkable extent managed to reach decisions on the basis of sound, high-quality, technical analysis, and that the political considerations come in only at a late stage. It was in that spirit that the discussion took place at the seminar.

    Twenty years after Savannah, when the idea of creating the SDR was first being debated, the political negotiations in the Ossola Group took place independently of the concurrent academic discussions in the Bellagio Group. We have come a long way since then, and I hope that the record and results of this seminar will lead to more optimism about what can be achieved by having academics and those in government work together.

    Another battle that Keynes lost was his effort to make the IMF into a world central bank. In Keynes’ original proposal, the Fund would have issued its own currency, to which he gave the awkward name “ban-cor.” Losing out to those who favored a strong role for the U.S. dollar and the “barbarous relic”—gold—was an immense disappointment to him. It is interesting now to reflect on that debate and to speculate on whether Keynes would have been pleased to see his ideas reborn some twenty years later, not as “bancor” but as the more modest and even more awkwardly named SDR.

    The goal of the 1996 seminar was only incidentally to reflect on the great debates of the past. Its primary task was to look to the future. Is the SDR destined to become the “principal reserve asset of the international monetary system,” as called for in the 1978 amendments to the Fund’s Articles of Agreement? Is it, to take the other extreme, merely a relic of the 1960s, as Harold James concluded in his recently published history?1 The answer to that overarching question clearly lies somewhere in the middle, which leaves a number of other interesting and important practical questions that must be answered:

    • Does the world economy still benefit from having SDRs? Who gains and who loses from the existing stock, and who would gain or lose from a new allocation of SDRs?

    • Would the benefits of the SDR be greater if allocations were tar targeted at specific groups of countries or implemented as part of a “safety net” or emergency financing mechanism?

    • Why is there almost no interest in private financial markets in the SDR as an asset? Could and should the SDR be redesigned to make it more attractive to the private sector?

    • How will the establishment of monetary union in Europe affect the role of the SDR? Looking further ahead, if Europe, the United States, and Japan were to eventually make a commitment to stabilize their exchange rates, for example in a target zone system, could the SDR contribute to that process?

    • Would the SDR provide a better means of financing IMF lending than the present system, which requires the Fund to obtain currencies for most of its operations?

    None of the conveners of this seminar believed that it would be easy to find definitive answers to these questions, but we hoped to identify key issues and narrow the prevailing differences about the role that the SDR could play. The Fund’s Executive Directors—most of whom participated in the seminar—were listening closely, knowing that they would be called upon in a few weeks to help formulate a report to the Interim Committee in time for its next meeting, which was to be held on April 22. Resolving these issues will take more time, but I think this seminar should be judged a success and should be remembered as a step on the right path, because it helped greatly to clarify the key issues.

    In addition to the many distinguished participants whose contributions are recorded in this volume, we were honored at the seminar by the presence of one of the great and central figures in the history of the IMF: Edward M. Bernstein. As deputy to Harry Dexter White at the U.S. Treasury in the early 1940s, Eddie was instrumental in developing both the U.S. plan and the final compromise for the Fund’s Articles of Agreement. At the Bretton Woods conference in 1944, he was both the chief technical advisor and the principal spokesman for the U.S. delegation. When the Fund opened its doors in 1946, he became the first Director of Research, a position that he held until he left the Fund in 1958. One of his many intellectual contributions was his pioneering work on the role of international reserve assets—work that helped make possible the creation of the SDR in 1969. On June 8, 1996, less than three months after attending this seminar, Eddie Bernstein passed away at the age of 91. His life was an inspiration to all of us.

    Stanley Fischer

    First Deputy Managing Director

    International Monetary Fund

    See Harold James, International Monetary Cooperation Since Bretton Woods (Washington: International Monetary Fund and Oxford University Press, 1996), p. 174


    This volume is the record of a seminar held at the International Monetary Fund in Washington, D.C., on March 18–19,1996. The speakers were chosen from among policymakers, academic economists, and other influential leaders from throughout the world. All of them are respected experts on issues related to the functioning of the international monetary system, and many of them have contributed in various ways to the development or analysis of the special drawing right as an international reserve asset.

    The papers included in this volume were prepared for the seminar and served as the basis for the authors’ presentations. In addition, we have included the remarks made by discussants, along with summaries of the general discussion. Chapter 1 comprises the luncheon address by the Managing Director of the IMF and remarks made by former U.S. Treasury Secretary Henry H. Fowler. Chapter 2 describes the background to the seminar and provides an overview of the main issues and proposals that were discussed by participants. The remaining chapters correspond—in chronological order—to the seminar sessions.

    The views expressed in this volume are those of the individual authors and participants, subject to any misinterpretation that might have crept in through the editorial process, for which we alone are responsible. The opinions expressed are not necessarily those of the International Monetary Fund or of any institution with which an individual author is affiliated.

    Both the seminar and this volume were the product of many people in addition to the authors. We extend a special note of thanks to Leo Van Houtven for his guidance in helping to direct this project; to Elin Knotter, who edited the entire manuscript and drafted the summaries of the general discussion for Chapters 7 through 10; to Sara Kane, who drafted the remaining discussion summaries; to Craig Sevy, who oversaw and coordinated the administrative arrangements for the seminar; to Marina Primorac, who oversaw the final editing and production of the book; to Adrienne Dent, for her tireless assistance in preparing the manuscript; to Norma Alvarado, for her valuable administrative support; and especially to Marta Vindiola, who made many invaluable and varied contributions at every stage of the project.

    Michael Mussa

    James M. Boughton

    Peter Isard


    Seminar Participants

    Featured Speakers

    Montek Singh Ahluwalia has been Finance Secretary in the Ministry of Finance of India since 1993. He held posts as Secretary of the Department of Economic Affairs in the Ministry of Finance from 1991 to 1993, Commerce Secretary from 1990 to 1991, Special Secretary to the Prime Minister from 1988 to 1990, Additional Secretary to the Prime Minister from 1985 to 1988, and Economic Advisor in the Department of Economic Affairs in the Ministry of Finance from 1979 to 1985. He previously worked in the World Bank, where for several years he was Chief of the Income Distribution Division in the Development Research Center (1972–79). He is the author of numerous publications on economics and development.

    Ariel Buira has been Deputy Governor of Banco de México since April 1993; he previously held positions in the international affairs section of Banco de México as Director (1985–93) and Deputy Director (1982–85). He was appointed Executive Director at the IMF in 1978, a position he held until 1982; he had earlier worked as an IMF Economist (1970–75). He has also held the post of Professor of Economics in the Graduate Program of Colegio de México, is the author of various publications, and has represented Mexico in numerous conferences and negotiations.

    Michel Camdessus has been Managing Director and Chairman of the Executive Board of the International Monetary Fund since January 1987. He was reappointed for successive five-year periods beginning in 1992 and 1997. From November 1984 until his appointment at the Fund, Mr. Camdessus was the Governor of the Bank of France. He was previously Director of the French Treasury, from February 1982 to August 1984, and Chairman of the Paris Club, from 1978 to 1984. After having served as Financial Attaché to the French Delegation at the European Economic Community in Brussels from 1966 to 1968, he returned to the Treasury and went on to become Assistant Director in 1971, Deputy Director in 1974, and Director in 1982. While on these assignments, Mr. Camdessus chaired the Paris Club meetings of creditor countries for six years and was Chairman of the Monetary Committee of the European Economic Community from 1982 to 1984.

    K. Alec Chrystal is Professor of Monetary Economics, Department of Banking and Finance, at City University Business School in London. Previous posts include Economic Advisor at the U.K. Treasury; Visiting Scholar at the Federal Reserve Bank of St. Louis; and teaching positions at the Universities of Essex, Manchester, and Sheffield, and at the University of California at Davies. He has published widely in professional journals on macroeconomics, monetary economics, international finance, and political economy.

    W. Max Corden has been Professor of International Economics at the Paul H. Nitze School of Advanced International Studies of the Johns Hopkins University since 1989. He served as Senior Advisor in the Research Department of the IMF from 1986–88; was President of the Economic Society of Australia and New Zealand from 1977–80; and was a Member of the Group of Thirty from 1982–90. He was Professor of Economics at the Australian National University from 1977 to 1988, and held various positions in research and teaching economics; he was Nuffield Reader in International Economics and Fellow of Nuffield College, Oxford (1967–76). Professor Corden has also taught at Berkeley, Minnesota, Princeton, and Harvard, and has published widely and received various awards and prizes for his work.

    Christian de Boissieu is Professor of Economics, University of Paris-I (Panthéon-Sorbonne). He has served as a consultant to the World Bank, to the European Commission, and to the Board of Governors of the Federal Reserve System. He currently serves as economic advisor to the Paris Chamber of Commerce and Industry, and to various national credit and banking commissions. He is honorary President of the French Finance Association, and a member of several financial advisory boards and editorial journals. He has published 12 books and many articles on monetary analysis and policy.

    Marcello de Cecco has been Professor of Monetary Economics at the University of Rome La Sapienza since 1986. He has also been Professor of Economics at the European University Institute in Florence (1979–86) and at the University of Siena (1968–79), and was assistant lecturer at the University of East Anglia in England (1967–68). He has served on various Boards: as Executive Director of Monte dei Paschi di Siena (1978–83), and as Director of both CREDIOP in Rome (1979–81) and the Italian International Bank in London (1980–83). He is the author of several publications on monetary economics.

    Paul De Grauwe has been teaching at the Catholic University of Leuven since 1974, as Professor since 1982. He has also been a Visiting Professor at Saarbrücken (1991–92), the Institut für Weltwirtschaft at Kiel (1989–91), the University of Brussels (1988), the College of Europe (1985–87), the University of Pennsylvania (1983), the University of Michigan (1981), and the University of Paris (1978). Since 1988 he has been a research fellow of the Centre for Economic Policy Research (CEPR). In 1991 he became a member of the Belgian Parliament. His research and publications relate to international monetary relations, monetary integration, foreign exchange markets, and open economy macroeconomics.

    Adolfo César Diz was President of the Central Bank of Argentina from 1976 to 1981. He held prior positions as IMF Executive Director (1966–68) and as Argentina’s Financial Representative in Europe (1969–73). He has served as Director of the Center for Latin American Monetary Studies in Mexico (1973–76), the Per Jacobsson Foundation (1973–91), and the University of Tucumán’s Institute for Economic Research (1959–66). Dr. Diz, who holds a Ph.D. in Economics from the University of Chicago, has taught econometrics, statistics, and monetary theory at the Universities of Tucumán and Buenos Aires. Today he consults widely for governments, international agencies, and the private sector, and he continues to write on public policy issues.

    Wendy Dobson is Professor of Economics at the University of Toronto. She served as Canada’s Associate Deputy Minister of Finance from 1987 to 1989 and has headed Canada’s leading independent policy institute. She is the author of several publications on economic policy cooperation, including her 1991 book, Economic Policy Coordination: Requiem or Prologue?

    Kathryn M. Dominguez is Associate Professor of Public Policy at the John F. Kennedy School of Government, Harvard University, and has been a member of the Harvard faculty since 1987. She also is a Faculty Research Fellow at the National Bureau of Economic Research. During the 1991–92 academic year she was an Olin Fellow at the National Bureau of Economic Research, and during 1990–91 a Visiting Assistant Professor and Assistant Director, International Finance Section of the Economics Department at Princeton University. She has worked as research consultant for US-AID, the Federal Reserve System, and the World Bank. She has written a number of articles and two recent books on foreign exchange rate behavior.

    Barry Eichengreen is the John L. Simpson Professor of Economics and Professor of Political Science at the University of California at Berkeley, where he has taught since 1987. Previously, he was Associate Professor of Economics at Harvard from 1980 to 1987. A noted expert on economic history and international economics, Professor Eichengreen holds a Ph.D. from Yale University and is a prolific author of books and articles in economic journals and conference volumes.

    Stanley Fischer has been First Deputy Managing Director of the IMF since September 1994. He was previously the Killian Professor and Head of the Department of Economics at MIT, where he first worked as Associate Professor of Economics in 1973, becoming full Professor in 1977. He had previously worked as Assistant Professor of Economics at the University of Chicago (1969–73). Mr. Fischer has held visiting positions at the Hebrew University in Jerusalem and at the Hoover Institution in Stanford. From 1988 to 1990 he served in the World Bank as Vice President of Development Economics and Chief Economist. He has also held consulting appointments with the U.S. State Department, the U.S. Treasury, the World Bank, the IMF, the Bank of Israel, and the Central Bank of Venezuela. He is the author of a number of texts in economics, has published extensively in the professional journals, edited various books, and served as Associate Editor of economics journals. From 1986 to 1994 he was editor of the NBER Macroeconomics Annual.

    Henry H. Fowler was Secretary of the U.S. Treasury from 1965 to 1968, and Undersecretary from 1961 to 1964. As Secretary, he initiated the development of the U.S. plan that led to the creation of the SDR as a new international reserve asset. Secretary Fowler has a wealth of prior experience in academic and governmental institutions, and for many years was a senior member of the Washington law firm, Fowler, Leva Hawes & Symington.

    Jeffrey A. Frankel is Professor of Economics at the University of California at Berkeley, where he joined as Assistant Professor in 1979. He is also Director of the Colloquium for Research in International Policy Economics and Director of the Center for International and Development Economic Research. He has been a visiting scholar at the Federal Reserve Board and at the IMF. Professor Frankel is a Research Associate at the National Bureau of Economic Research, where he is Director of the Program in International Finance and Macroeconomics. He has also been a Visiting Fellow at the Institute for International Economics in Washington, Senior Staff Economist for the U.S. President’s Council of Economic Advisors, Visiting Professor at Harvard, and Visiting Assistant Professor at Yale. He is the author of various articles in economics and co-author of World Trade and Payments, seventh edition (1996).

    Jonathan Herbert Frimpong-Ansah was Governor of the Bank of Ghana from 1968 to 1973, following earlier appointments as Deputy Governor (1965–68) and Director of Research (1961–65). He has also served as a consultant with the World Bank (1975), and on various boards and committees: most notably, as Vice Chairman of the Deputies of the Committee of Twenty (1973–74); Chairman of the UN Experts Group on the Establishment of African-Caribbean-Pacific Investment and Trade Bank (1978–79); and as Director of SIFIDA, Geneva since 1981. He was appointed Fellow at the Center for International Affairs of Harvard in 1978, and at the Ghana Academy of Arts and Sciences in 1979, in the field of monetary economics. He has held numerous public, academic, and private sector positions and is currently a member of the Policy Committee of Oxford University’s Centre for the Study of African Economies. He has published widely on economic and monetary subjects relating to the African economy.

    Francesco Giavazzi is Professor of Economics at Bocconi University in Milan, a Research Associate of the U.S. National Bureau of Economic Research, and a Research Fellow of the Centre for Economic Policy Research in London. He has taught at various European universities including the University of Essex and the European University in Florence. From 1992 to 1994 he was a Director of the Italian Treasury. He has written a book jointly with Alberto Giovannini on the European Monetary System, published by MIT Press in 1989.

    H. Robert Heller is President of the International Payments Institute. Before taking that position, he was President and CEO of Visa USA from 1991 to 1993. His previous experience includes positions as Governor of the Federal Reserve Board in Washington (1986–89) and as Senior Vice President of the Bank of America (1978–86). Prior to that, he was Chief of the Financial Studies Division in the Research Department at the IMF. While at the Fund, he published numerous articles on international financial issues, and his more recent publications have examined the design of payments systems.

    Helmut Hesse is the President of the Land Central Bank in Bremen, Lower Saxony, and Saxony-Anhalt in Germany. In that capacity, he is a member of the Central Bank Council of the Deutsche Bundesbank. From 1966 to 1988, Mr. Hesse was a full professor for economics at the Georg-August University of Gottingen. Since 1988 he has been an honorary professor at that university. During his academic career, he has been a member of a number of prominent economic research and advisory institutions, including the Council of Economic Advisers of Germany and the Club of Rome. In 1983–84, Professor Hesse taught at Georgetown University in Washington. He has also conducted research at the World Bank, the GATT, and the European Union.

    Peter Kenen has been Professor of Economics and International Finance at Princeton University since 1971 and is also the Director of Princeton’s International Finance Section. He previously held several positions at Columbia University, as member of the Faculty (1957–71), Professor of Economics (1964–71), Chairman of the Department of Economics (1967–69), Provost (1969–70), and Advisor to the President (1970–71). He was Ford Research Professor at the University of California at Berkeley in 1979–80 and Professorial Fellow at the Australian National University in 1983–84. He also has served as a consultant to the U.S. Council of Economic Advisers, the U.S. Treasury, the U.S. Bureau of the Budget, and the IMF. Professor Kenen has published numerous books and articles, has been an editor of several professional journals, and is a recipient of distinguished prizes, awards, and fellowships.

    Azizali Mohammed is Special Advisor to the Governor of the State Bank of Pakistan. He was Alternate Executive Director at the IMF from 1990 to 1992. From 1980 to 1990, he served as the first Director of the External Relations Department at the IMF, having previously worked in the European and other departments. From 1979 to 1980 he was Advisor to the Saudi Arabian Monetary Agency in Riyadh, and from 1970 to 1972, Economic Advisor to the Ministry of Finance of Pakistan. From 1973 to 1974, Mr. Mohammed served as Secretary for the Technical Group on the Transfer of Real Resources, Committee of Twenty. He is the co-author of The Economy of Pakistan and Trade, Finance and Development in Pakistan.

    Michael Mussa is the IMF Economic Counsellor and Director of the Research Department, a position he has held since September 1991. Before joining the staff of the Fund, he was a member of the faculty of the Graduate School of Business of the University of Chicago, starting as an Associate Professor in 1976 and being named the William H. Abbott Professor of International Business in 1980. Prior to moving to Chicago, Mr. Mussa spent five years on the faculty of Economics at the University of Rochester. He also served as a visiting faculty member at the Graduate Center of the City University of New York, the London School of Economics, and the Graduate Institute of International Studies in Geneva. He has published widely in the fields of international economics, macroeconomics, monetary economics, and municipal finance. He has received awards for his work, and in 1987 was elected a Fellow of the Econometric Society. He served as Member of the U.S. Council of Economic Advisers from August 1986 to September 1988.

    Tommaso Padoa-Schioppa is Deputy Director General of the Banca d’Italia, which he joined in 1968. He also is Chairman of the Basle Committee on Banking Supervision (since 1993); Alternate Member of the Council of the European Monetary Institute since 1995; and a member of the Working Party 3 of the Economic Policy Committee of the OECD, of the Deputies of the Group of Ten, and of the Group of Thirty. From 1991 to 1995 he chaired the Working Group on Payment Systems of the Central Banks of the European Community (now the European Monetary Institute); from 1988 to 1991 he chaired the Banking Advisory Committee of the European Communities; and from 1988 to 1989 he was joint Secretary to the Committee for the Study of the European Economic and Monetary Union (“Delors Committee”). From 1979 to 1983 he served as Director-General for Economic and Financial Affairs at the Commission of the European Communities in Brussels. Dr. Padoa-Schioppa holds degrees from the Bocconi University and the Massachusetts Institute of Technology.

    Jacques Polak has been President of the Per Jacobsson Foundation since 1987. He served as IMF Executive Director from 1981 to 1986 and before that held key staff positions at the IMF. He worked in the Research Department from 1947 to 1979 and served as its Director from 1958 on; he was also the Economic Counsellor from 1966 to 1979. In the Research Department, Mr. Polak was responsible for much of the original design and early evolution of the SDR. Prior to joining the IMF, Mr. Polak worked as Assistant Financial Advisor and then Economic Advisor for the United Nations Relief and Rehabilitation Administration in Washington, D.C. (1944–46); as Economist in the Netherlands Embassy in Washington, D.C. (1943–44)—a position that took him to the Bretton Woods Conference in 1944; and as Economist in the League of Nations in Geneva and Princeton (1937–43). He held professorial lecturer positions at Johns Hopkins University (1949–50 and 1987) and at the George Washington University (1950–55); and he is a Fellow of the Econometric Society. He is the author of numerous publications in finance and economics and in 1991 was honored by the IMF and the Netherlands Bank with a Festschrift celebrating his more than fifty years of contributions to the economics profession.

    Rudolf Rhomberg retired from the IMF in 1987, where he was Deputy Director of the Research Department. He received a Doctorate of Economics at the University of Vienna in 1949, an M.A. from Yale University in 1950, and a Ph.D. at Yale University in 1959. He was an instructor and Assistant Professor at the University of Connecticut before joining the Fund staff in 1959. At the Fund, he participated in, and became a leading expert on, the development of the SDR. He maintained a keen interest in the SDR throughout his career.

    H. Onno Ruding was appointed Vice Chairman of Citicorp and Citibank in 1992, having become a Director of Citicorp in 1990. He also serves as a nonexecutive director of various boards and corporations. From 1990 to 1992 he was Chairman of the Netherlands Christian Federation of Employers (NCW) in The Hague and he chaired the committee of independent experts on company taxation, which was responsible for publishing a report in 1992 at the request of the Commission of the European Communities. He served as Minister of Finance of the Netherlands (1982–89); Chairman of the Interim Committee of the IMF (1985–89); and Chairman of the Board of Governors of the Asian Development Bank and the Inter-American Development Bank in 1984 and 1989, respectively. From 1977 to 1980, Mr. Ruding was a member of the Executive Board at the IMF.

    Fabrizio Saccomanni is the head of the Foreign Department of Banca d’Italia, having previously worked in their Research Department from 1976 to 1984. He was on the staff of the IMF from 1970 to 1973 and Technical Assistant to the Fund’s Executive Director for Italy from 1973 to 1975. Mr. Saccomanni also serves as Chairman of the Foreign Exchange Policy Subcommittee of the European Monetary Institute. He gained a Master’s Degree in Economics and Business Administration from the Bocconi University of Milan. He has been a member of the Deputies of the Group of Ten (1988–95) and currently holds membership with the Board of Directors of the Italian Forex Club and the Board of Directors of the Instituto Affari Internazionali (Rome).

    Horst Siebert is the President of the Kiel Institute of World Economics in Germany and holds the Chair of Theoretical Economics at the University of Kiel. Professor Siebert has been a member of the Scientific Council of the Ministry of Economics since 1985, and since 1991 he also has been a member of the Council of Economic Advisers. He has been a visiting scholar at some of the world’s leading universities and was recently elected to the Council of the European Economic Association.

    Robert Solomon is Guest Scholar at the Brookings Institution and President of RS Associates, Inc. He was a Senior Fellow at Brookings from 1976 to 1980. He served with the Federal Reserve Board from 1947 to 1976 in various capacities, notably as Director of the International Finance Division and as an advisor to the Board of Governors. He is the author of several publications on international economics and the international monetary system, including the book that many regard as the definitive history of the postwar international economic order. He has published the International Economic Letter since 1981, and contributed to many professional journals. He has received a number of decorations and public service awards.

    Christian Stals started his career with the South African Reserve Bank in 1955 and was appointed Governor of the South African Reserve Bank in August 1989. His distinguished career with the Bank includes the positions of Special Economic Advisor to the Minister of Finance in 1989, Director General of the Department of Finance in 1985, Senior Deputy Governor in 1981, Deputy Governor in 1976, and General Manager in 1975. He is the recipient of the State President’s decoration for distinguished service.

    György Surányi has been the President of the National Bank of Hungary since March 1995 and served in the same position from 1990 to 1991. He was Managing Director of the Central-European International Bank, Ltd., from 1992 to 1995; Secretary of State of the National Planning Office of Hungary from 1989 to 1990; and Counsellor to the Deputy Prime Minister from 1987 to 1989. Mr. Surányi has also been a consultant to the World Bank, a Research Fellow and Head of Department at the Financial Research Institute in Budapest, and a Professor of Finance in the Budapest University of Economics. He is the author of several articles and books on monetary and financial issues.

    Alexander K. Swoboda is Director of Geneva’s Graduate Institute of International Studies, where he is also Professor of International Economics; he is also Professor of Economics at the University of Geneva and a Board Member and the Founding Director of the International Center for Monetary and Banking Studies. Professor Swoboda has served on the board of the Swiss Economic Association and on the academic panel of the Group of Thirty. He regularly gives seminars and lectures at leading universities and international organizations, and he participates in major international monetary and financial conferences.

    Makoto Utsumi is Professor in the Faculty of Business and Commerce of Keio University in Tokyo, a position he has held since 1992. He previously worked for Japan’s Ministry of Finance from 1957 to 1991, where his positions included Director General of the International Finance Bureau and Vice Minister for International Affairs. He also served as Minister Extraordinary and Plenipotentiary at the Embassy of Japan in Washington. His many awards for distinguished service include honors from the Governments of Argentina, Mexico, and France. Since 1995, Mr. Utsumi has been Senior Advisor to the President of Nikko Securities. He also holds positions with several nonprofit organizations.

    Alejandro Végh is presently Advisor to Banco Velox in Buenos Aires, Argentina. He previously held positions related to his earlier career as industrial engineer and later as a politician and financial expert in Uruguay. He was Executive Director to the IMF (1990–93); Minister of Economics and Finance (1983–85); Ambassador to the United States (1982–83); Member of the Council of State (1976–83); Minister of Finance (1974–76); Director of Planning and Budget Office (1968); and Under-Secretary of State at the Ministry of Industry and Trade (1967). He has ample experience as a consultant in planning and finance for engineering projects and ministries of finance throughout Latin America, as well as international institutions.

    J. de Beaufort Wijnholds has been an Executive Director at the IMF since 1994. He was Deputy Executive Director of the Nederlandsche Bank from 1987 to 1994, where he had worked since 1968 with interim assignments in Washington as Assistant to the Executive Director at the World Bank and at the IMF. He served as Alternate Executive Director in the IMF from 1985 to 1987. He has been a member of the Netherlands National Council on Development Cooperation (1980–84), an alternate member in the Social and Economic Council of the Netherlands (1987–94), Vice Chairman of the State Commission for Credit and Investment Guarantees (1988-92), and a member of the Gold and Foreign Exchange Committee and the Eurocurrency Standing Committee of the Group of Ten (1992–94). From 1992 to 1994 he taught at the University of Groningen as part-time professor in money and banking. He is the author of several books and various articles on monetary and financial subjects, including a 1977 monograph on international reserves.

    John Williamson has been a Senior Fellow at the Institute for International Economics since 1981. He previously held positions as Professor at the Catholic University of Rio de Janeiro (1978–81) and the University of Warwick (1970–77); and he has also taught at Princeton University and the University of York. He served as Advisor at the IMF (1972–74), and at the U.K. Treasury (1968–70). He is the author of several books and publications on monetary policy reform.

    Holger Wolf is Assistant Professor of International Economics at the Stern Business School at New York University. Professor Wolf, who earned his Ph.D. at MIT in 1992, is a specialist on exchange rates, monetary history, and the German economy.

    Muhammad Yaqub has been the Governor of the State Bank of Pakistan since 1993, having previously served as Additional Secretary in the Ministry of Finance (1992–93). He joined the IMF in 1972, where from 1981 to 1982 he was Assistant Director of the Middle Eastern Department. In Pakistan he served as a member of the Pakistan Taxation Commission in 1972, and at the State Bank of Pakistan he held the posts of Deputy and Senior Deputy Director (1968–72), and Assistant Director of the Research Department (1966–68). Dr. Yaqub holds Master’s degrees in Economics from Punjab and Yale Universities, and he received a Ph.D. in Economics from Princeton University in 1966.

    Iqbal Zaidi is Research Advisor at the State Bank of Pakistan. Prior to that appointment, Mr. Zaidi was on the staff of the IMF for more than ten years, serving in the Middle Eastern, Asian, Treasurer’s, and Research Departments, as well as in the office of the Executive Director for Pakistan. His research on development economics has been widely published. Mr. Zaidi holds a Ph.D. in Economics from Princeton University.

    ZHU Xiaohua is Deputy Governor of the People’s Bank of China, having previously served at the Bank as Director General of the State Administration of Exchange Control from 1993 to 1995 when he made an important contribution to the reform of China’s foreign exchange regime. From 1992 to 1993 he worked with the Xinhua News Agency in Hong Kong, where he was Deputy Director of the Economics Department; and from 1991 to 1992 he was a Special Appointee at the IMF. Earlier he held several posts at the Shanghai branch of the People’s Bank of China: as Deputy President (1987–90), Assistant President and Chief of Foreign Exchange Control (1986–87), Deputy Chief of Foreign Exchange Control (1985–86), and Deputy Director of the Bank’s Financial Research Institute (1979–85).

    Session Chairs

    Marc-Antoine Autheman

    Executive Director, IMF

    Stanley Fischer

    First Deputy Managing Director, IMF

    J.E. Ismael

    Executive Director, IMF

    Alexandre Kafka

    Executive Director, IMF

    Karin Lissakers

    Executive Director, IMF

    Alassane D. Ouattara

    Deputy Managing

    Director, IMF

    A. Shakour Shaalan

    Executive Director, IMF

    Leo Van Houtven

    Secretary and Counsellor, IMF

    Participants in General Discussion

    William Anthony Allen

    Deputy Director, Monetary Analysis

    Policy and Markets Area

    Bank of England

    Robert Chote

    Economics Editor

    Financial Times

    Warren Coats


    Monetary and Exchange Affairs Department

    International Monetary Fund

    Morris Goldstein

    Senior Fellow

    Institute for International Economics

    Felix C. Kani


    Economics Department

    Bank of Zambia

    Edwin M. Truman

    Staff Director

    Division of International Finance

    Board of Governors of the Federal Reserve System

    Francis Woehrling


    Director for Monetary Affairs

    European Commission

    Yusuke Onitsuka

    Professor of Economics

    University of Tokyo

    Other Participants


    Said Maherzi

    Central Director for Relations with Official and Multinational Institutions

    Banque d’Algeria


    Antonio Bongo Passi

    Chief Economist Research and Statistics Department

    Banco National de Angola


    Pablo E. Guidotti


    Banco Central de la Republica Argentina


    Nigel Ray

    Assistant Secretary

    International Finance and Development Branch

    International Economy Division

    Department of the Treasury


    Helmut Gruber

    U.S. Representative

    Austrian National Bank

    Thomas Wieser

    Deputy Director General

    Federal Ministry of Finance


    John Rolle

    Senior Research Officer

    Central Bank of The Bahamas


    Bernard Delbecque

    Advisor to the Chairman of the Interim Committee

    Ministère des Finances

    Jan Michielsen

    Advisor to the Board of Directors Banque Nationale de Belgique


    Maria Celina B. Arraes

    Undersecretary Board of Directors

    Banco Central do Brasil


    Aime D. Bida-Kolika

    Deputy Director

    Department of External Financial Relations

    Banque des Etats de l’Afrique Centrale


    Jeff Chelsky

    Senior Economist

    International Trade and Finance Branch

    Depariment of Finance

    Bank of Canada

    John F. Helliwell


    Department of Economics

    University of British Columbia

    Robert Lafrance

    Assistant Chief International Department

    Bank of Canada


    ZHAI Jingsheng

    Xinhua News Agency


    Oscar Marulanda Gómez


    Banco de ta República


    Jan Vit

    Vice Governor

    Czech National Bank


    Ole Hollensen

    Special Advisor, international Department

    Danmarks Nationalbank


    Mónica Salvador


    External Sector

    Banco Central del Ecuador


    Kjell Peter Soderlund

    Head, International Secretariat

    Bank of Finland


    Carola Kaps

    Frankfurter Allgemeine Zeitung


    Mario Alberto Garcia-Lara

    Director, Economic Research Department

    Banco de Guatemala


    Vladimir François

    Assistant Director

    Division of Economic Studies

    Ministère de l’Economie et des Finances

    Pierre-Richard Leroy

    Chief Adviser Programming Unit

    Ministère de l’Economie et des Finances


    Orlando Garner

    Special Analyst for External Debt Issues

    Banco Central de Honduras


    Sigurdur Nordal


    Central Bank of Iceland


    Fatemeh Ghorbani Baghbani

    Research Officer, International Organization and Studies Department

    Central Bank of the Islamic Republic of Iran

    Mohammad Reza Shojaeddini

    Director, Economic Research Department

    Central Bank of the Islamic Republic of Iran


    Alessandro Merli

    Financial Editor

    Il Sole 24 Ore

    Tor Myrvang


    International Fund for Agricultural Development


    Koji Myose

    Deputy Director

    International Organizations Division

    International Finance Bureau

    Ministry of Finance

    Yasuo Takamura

    Section Chief, International Organizations Division

    International Finance Bureau

    Ministry of Finance

    Hiroshi Tohyama

    U.S. Representative

    The Bank of Japan


    Michel I. Marto

    Deputy Governor

    Central Bank of Jordan


    Roberts Grava

    Head of Foreign Exchange Department and Member of the Executive Board

    Bank of Latvia


    Gail Makenete

    Senior Foreign Exchange Officer

    International Division

    Central Bank of Lesotho

    Zodwa Matsau

    Senior Economist

    Research Department

    Central Bank of Lesotho


    Waldemar De Sousa


    Banco de Mozambique

    Luisa Tivane Economist

    Banco de Mozambique


    Steffen Heij

    Senior Economist

    International Monetary Affairs Division

    Ministry of Finance

    Jurgen Leijdekker

    Senior Economist

    De Nederlandsche Bank, NV


    Justina O. Ashinze

    Assistant Director

    Central Bank of Nigeria

    Adebisi Oloyede

    Deputy Director

    Governor’s Department

    Central Bank of Nigeria


    Audun Groenn

    Assistant Director and Head, International Section

    Norges Bank


    Abel Moreira Mateus

    Director General

    Banco de Portugal


    Raffaele Giardi

    Administrative Secretary General

    Ministry of Finance and Budget


    Abdoulaye Bio Tchane

    Director, Economic and Monetary Survey

    Banque Centrale des Etats de l’Afrique de l’Ouest

    Hilariin Olou

    Chef de Service

    Banque Central des Etats de l’Afrique de l’Ouest


    Jaroslav Na’Hlik


    International Financial Institutions Division

    Ministry of Finance

    Juraj Sipko


    International Financial Relations Department

    Ministry of Finance


    Martin Carlens


    Sveriges Riksbank

    Sven-Olof Johansson

    Assistant Under-Secretary

    Ministry of Finance


    Stefan Karl Maeder

    International Monetary Relations Department

    Swiss National Bank


    Omer Altay

    Director of Research

    Turkiye Cumhuriyet Merkez Bankasi


    Polycarp Musinguzi


    Research Department

    Bank of Uganda


    Graham Bird


    Department of Economics

    University of Surrey

    Clive Crook

    Deputy Editor

    The Economist

    John Drage

    Senior Adviser

    International Financial Institutions

    Bank of England

    David Peretz

    Deputy Director

    International Finance

    H.M. Treasury


    Edward M. Bernstein

    The Brookings Institution

    Ralph Bryant

    Senior Fellow

    Economic Studies

    The Brookings Institution

    Alver G. Carlson



    Richard N. Cooper

    Harvard University

    Michael P. Dooley

    Professor of Economics

    University of California at Santa Cruz

    Steve Dryden

    Bloomberg Business News

    Timothy Geithner

    Deputy Assistant Secretary,

    International Monetary and Financial Policy

    Department of the Treasury

    Paul Lewis

    New York Times

    James M. Lister


    Office of International Monetary Policy

    Department of the Treasury

    Alfred Reifman

    Senior Fellow

    International Economics

    Congressional Research Service

    Library of Congress

    Alexis Rieffel

    Senior Advisor

    Institute of International Finance


    Hernan Oyarzabal

    International Coordinator

    Banco Central de Venezuela


    Avet M. Hamuwele

    Acting Director—Finance

    Bank of Zambia


    Stephen Gwasira

    General Manager

    Domestic and Foreign Banking

    Reserve Bank of Zimbabwe

    International Organizations*

    Erfan Al-Azmeh

    Director of Economic Policy Institute and Acting Director of Treasury and Investments

    Arab Monetary Fund

    Peter Bekx

    Economic and Financial Advisor

    Delegation of the European Commission

    T.R.G. Bingham

    Secretary to the Group of Ten

    Bank for International Settlements

    Kurt Delodder

    Executive Director’s Assistant

    World Bank

    Joram Kariisa-Kasa

    Director of Finance

    East African Development Bank

    Wendell Samuel

    Senior Director

    Research and Information Department

    Eastern Caribbean Central Bank

    Fabian R. Tibeita

    Director General

    East African Development Bank

    Dwight Venner


    Eastern Caribbean Central Bank

    Note: The affiliations and titles are those at the time of the conference

    IMF staff and Executive Directors are not listed, except those who are included above as active participants

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