In this book, policymakers, academics and market practitioners exchange views on the current economic situation, appropriate financial regulatory and supervisory standards, design of financial market institutions, and efficient safety nets for banks and other financial institutions. This volume...

Concern continues to be expressed that there is no adequate mechanism for controlling the volume of world reserves. This paper considers whether the objective of controlling aggregate reserves is still appropriate under current international monetary arrangements and discusses some of the means...

Much analysis of the Euro-currency market has used the familiar credit-multiplier framework from the conventional treatment of domestic banking systems. Such a framework assumes that the ratio of reserve assets to the total balance sheet of the system is fixed, and that the quantity of reserve...

This paper examines the proposition that flexible exchange rates are more (less) inflationary than a system of fixed exchange rates. In contrast to much of the earlier writing on this issue, care is taken to distinguish between: (i) the effects on a single country's inflation rate and effects on...

Policies of economic stabilization attempt to improve the balance between supply and demand in an economy, in order to moderate inflationary pressures and strengthen the balance of payments. Such policies typically involve measures to restrain aggregate demand, although, recently, increasing...

The demand for money is one of the most intensively investigated economic relationships, and one that has become increasingly important in the formulation and adaptation of programs of financial stabilization. This paper attempts to estimate a relatively simple formulation of the demand for...

It is clear that a number of major oil exporting countries will continue to have large structural surpluses in their balances of payments on current account for a number of years to come, and also that these surpluses will be matched by capital outflows. If the adjustment process is to operate...

This report comprises three papers written by staff members of the Fund's Research Department on issues arising out of the reports on the international monetary system prepared in 1985 by the Group of Ten (representing the industrial countries participating in the General Arrangements to Borrow)...