This paper highlights that the 1980 Annual Meeting of the Board of Governors of the IMF affirmed the willingness of the IMF to evolve, under its charter, to meet new circumstances; but in some ways there was a departure from the past. Two substantive problems dominated the Meeting: the persistence of high inflation as a worldwide problem and the large payments deficits engulfing the non-oil developing countries. There was general agreement that these were the immediate threats to international monetary stability.

Abstract

This paper highlights that the 1980 Annual Meeting of the Board of Governors of the IMF affirmed the willingness of the IMF to evolve, under its charter, to meet new circumstances; but in some ways there was a departure from the past. Two substantive problems dominated the Meeting: the persistence of high inflation as a worldwide problem and the large payments deficits engulfing the non-oil developing countries. There was general agreement that these were the immediate threats to international monetary stability.

Finance & Development

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RECENT PUBLICATIONS OF THE INTERNATIONAL MONETARY FUND

TWO NEW ISSUES IN THE PAMPHLET SERIES

SDRs, Currencies, and Gold: Fourth Survey of New Legal Developments by Joseph Gold (Pamphlet No. 33)

This pamphlet is the fourth survey of certain changes in international and national monetary law and practice that have come about as the result of the Second Amendment of the Fund’s Articles of Agreement and of the monetary arrangements that are now permissible. The changes are pertinent mainly to three principles that are recognized by the present Articles: the special drawing right is to become the principal reserve asset in the international monetary system; the role of gold in the system is to be reduced gradually; and the par value system has been abrogated and members of the Fund are free to choose their exchange rate arrangements.

Compensatory Financing Facility by Louis M. Goreux (Pamphlet No. 34)

This pamphlet describes the objectives and modus operandi of the Fund’s compensatory financing facility. There are separate sections describing the main features of the facility, the nature of fluctuations in export earnings, and the operation of the facility. Appendices include a comparison between the Fund’s facility and the compensatory financing scheme (Stabex) administered by the European Community.

Both pamphlets are available in English; French and Spanish editions will be available shortly.

FIRST PAPER IN NEW SERIES, OCCASIONAL PAPERS

International Capital Markets: Recent Developments and Short-Term Prospects by a staff team headed by R.C. Williams, Exchange and Trade Relations Department

This paper describes and analyzes recent developments in international capital markets, reviews issues facing banks operating in these markets, and makes a preliminary assessment of market conditions and financing flows over the short term. It includes appendices on the financing of payments imbalances through international capital markets during the period 1974-78 and on the implications of growth of the Eurocurrency market for monetary policy and inflation.

Copies may be obtained free of charge from:

Office of External Relations

Attention: Publications Section

International Monetary Fund

Washington, D.C. 20431, U.S.A.

Finance & Development, December 1980
Author: International Monetary Fund. External Relations Dept.