Mr. Browne, a graduate of Adelaide University, South Australia, and Cambridge University, England, was an economist in the Southern European Division of the European Department of the Fund when this article was written. He is now in the International Finance Section of the Overseas Economic Relations Division of the Commonwealth Treasury, Canberra, Australia.
Mr. Van Houtven, Assistant Director of the European Department of the Fund, obtained degrees in law and economics in Belgium and then pursued graduate study at the London School of Economics.
A cash ratio of 4 per cent was established for the savings banks in December 1971. This reduced the overall liquidity of the credit system, because it required the savings banks to transfer to the Bank of Spain deposits which they held with the commercial banks.