Economic and Social Survey of Asia and the Far East 1971

image of Economic and Social Survey of Asia and the Far East 1971

This latest edition of the Survey analyzes current economic and social developments in the region against the background of events in the world economy. It also focuses on the serios problems of growth and transformation of the area's least developed and Pacific Island developing economies.



The international monetary situation

The international monetary mechanism which was based on the Bretton Woods system, as reflected in Fund Articles and practices, depended on the stability of exchange rates around par values that were fixed and agreed with the Fund. The recent pervasiveness of inflationary conditions in several leading industrial countries, the ineffectiveness of the Fund in enforcing necessary fiscal and monetary discipline in their policies, and the reluctance of some of these countries to affect appropriate changes in exchange rates in time and in a manner most likely to restore equilibrium in their payments, threatened the successful functioning of the system. Only a small proportion of current gold output accrued to monetary reserves during the 1960s, and the growth of international liquidity depended mainly on United States payments deficits.


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