The need for international credit facilities
In the preceding chapters the quantitative dimension of the need for reserves of individual countries and for the world as a whole was discussed. The present chapter addresses itself primarily to the qualitative dimension of international liquidity. As was mentioned in section iii of chapter 9, the question of the optimal composition of international reserves (the relationship between gold, SDRs and foreign exchange) will not be pursued further here, on the assumption that it is desirable to move toward and SDR-based international monetary system. However, there remains the question of the optimal composition of international liquidity as between reserves and credit facilities. Furthermore, there is the problem of determining the optimal degree of conditionality of international liquidity as between reserves and credit facilities. Furthermore, there is the problem of determining the optimal degree of conditionality of international credit facilities. In the following, the need for international credit facilities is analysed, and guidelines for arriving at decisions concerning the creation and use of such facilities are suggested. The matter is treated principally from a global point of view, in line with the fact that decisions concerning the most important international credit facilities — IMF drawing rights — are taken by the full membership of the IMF.
KeywordsPetroleum Income OECD
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