Abstract
The tendency of most observers has been to trace the development of the euro-currency system to a specific event or set of circumstances which appeared to act as a spark encouraging the practice of banks accepting deposits denominated in foreign currencies. In my own view, the main causes of the rapid and continuous growth have been the often unrelated policy measures adopted by many central banks to control their international and domestic financial positions. With each event further impetus was given to the system and, as operators became more familiar with its potential, further growth occurred.
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Further Reading
O. L. Altman, ‘Foreign Markets for Dollars, Sterling and Other Currencies’, International Monetary Fund Staff Papers, 8 (Dec 1961).
O. L. Altman, ‘Recent Developments in Foreign Markets for Dollars and Other Currencies’, in Factors Affecting the United States Balance of Payments, Joint Economic Committee of the 87th U.S. Congress (Washington: U.S. Government Printing Office, 1962).
O. L. Altman, ‘Recent Developments in Foreign Markets for Dollars and Other Currencies’, International Monetary Fund Staff Papers, 10 (Mar 1963).
O. L. Altman, ‘Euro-Dollars — Some Further Comments’, International Monetary Fund Staff Papers, 12 (Mar 1965).
Bank for International Settlements, Thirty-Fourth Annual Report (Basle, 1964).
C. A. Coombs, ‘Treasury and Federal Reserve Foreign Exchange Operations’, Review of the Federal Reserve Bank of New York (Mar 1968).
P. Einzig, The Eurodollar System (London: Macmillan, 1973).
M. Friedman, ‘The Euro-Dollar Market: Some First Principles’, Morgan Guaranty Survey (Oct 1969); reprinted in Review of the Federal Reserve Bank of St Louis (July 1971).
J. Heinz et al, ‘Recent Innovations in European Capital Markets’, Review of the Federal Reserve Bank of New York (Jan 1965).
C. P. Kindleberger, International Economics, 5th edn (Homewood, Ill.: Irwin, 1973).
F. H. Klopstock, ‘Money Creation in the Euro-Dollar Market — A Note on Professor Friedman’s Views’, Review of the Federal Reserve Bank of New York (Jan 1970).
H. H. Schloss, ‘The Bank for International Settlements’, Bulletin of the Schools of Business of New York University, nos 65–6 (Sep 1970).
W. Silber, ‘Innovation in the Financial Sector’, Working Paper No. 31, Salomon Brothers Center for the Study of Financial Institutions (Mar 1975).
A. Swoboda, ‘Vehicle Currencies and the Foreign Exchange Market: The Case of the Dollar’, in The International Market For Foreign Exchange, ed. Robert E. Aliber (New York: Praeger, 1969).
References
W. Silber, ‘Innovations in the Financial Sector’, Working Paper No. 31, Salomon Brothers Center for the Study of Financial Institutions (Mar 1975).
P. Einzig, History of Foreign Exchange (London: Macmillan, 1962).
O. L. Altman, ‘Recent Developments in Foreign Markets for Dollars and Other Currencies’, in Factors Affecting the United States Balance of Payments, Joint Economic Committee of the 87th U.S. Congress (Washington: U.S. Government Printing Office, 1962) pp. 485–523.
A. Swoboda, ‘Vehicle Currencies and the Foreign Exchange Market: The Case of the Dollar’, in The International Market for Foreign Exchange, ed. Robert E. Aliber (New York: Praeger, 1969).
O. L. Altman, ‘Foreign Markets for Dollars, Sterling and Other Currencies’, International Monetary Fund Staff Papers, 8 (Dec 1961) pp. 313–52; ‘Recent Developments in Foreign Markets for Dollars, Sterling and Other Currencies’, International Monetary Fund Staff Papers, 10 (Mar 1963) pp. 48–96; and ‘Euro-Dollars — Some Further Comments’, International Monetary Fund Staff Papers, 12 (Mar 1965) pp. 1–16.
H. H. Schloss, ‘The Bank for International Settlements’, Bulletin of the Schools of Business of New York University, nos 65–6 (Sep 1970).
P. Einzig, The Eurodollar System (London: Macmillan, 1973).
Bank for International Settlements, Thirty-Fourth Annual Report (Basle, 1964) p. 132.
M. Friedman, ‘The Euro-Dollar Market: Some First Principles’, Morgan Guaranty Survey (Oct 1969) pp. 4–14; reprinted in Review of the Federal Reserve Bank of St Louis, 53 (July 1971) pp. 16–24, this quotation p. 16.
F. H. Klopstock, ‘Money Creation in the Euro-Dollar Market — A Note on Professor Friedman’s Views’, Review of the Federal Reserve Bank of Mew York (Jan 1970) pp. 12–15, this quotation p. 14.
C. P. Kindleberger, International Economics, 5th edn (Homewood, Ill.: Irwin, 1973).
C. A. Coombs, ‘Treasury and Federal Reserve Foreign Exchange Operations’, Review of the Federal Reserve Bank of New York (Mar 1968) pp. 38–52, this quotation p. 50.
J. Heinz et al., ‘Recent Innovations in European Capital Markets’, Review of the Federal Reserve Bank of New York (Jan 1965) pp. 9–15, this quotation p. 10.
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© 1976 George W. McKenzie
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McKenzie, G.W. (1976). Development and Growth of the Euro-Currency System: The Formative Years, 1958–69. In: The Economics of the Euro-Currency System. Problems of Economic Integration. Palgrave, London. https://doi.org/10.1007/978-1-349-15649-8_7
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DOI: https://doi.org/10.1007/978-1-349-15649-8_7
Publisher Name: Palgrave, London
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