WEAKNESSES IN THE PRESENT INTERNATIONAL MONETARY SYSTEM

Abstract

In view of the persistent deficit in the U.S. balance of payments, the failure of new gold production to keep pace with the expansion of world trade, the recent worsening in the U.S. trade position and the rapid decrease official gold holdings, the frequent devaluation of British sterling, the two price gold agreement of 1968, and the franc-mark crises of 1968, the agreement of the creation of SDR’s, and the U.S. termination of convertibility of dollar claims into gold, it is not surprising that there has been much debate on major changes or reforms in the world monetary and payments system.