← Search

The Review of Economics and Statistics Vol. 44 No. 1 1962

The Distribution of the Debt Burden: A Reply

W. G. Bowen; R. G. Davis; D. H. Kopf

Abstract

The proposals presented above show a simple, feasible arrangement whereby countries, holding part of their official reserves in the form of foreign exchange, may be protected from existing reductions of the value of their international reserves. As a consequence, a country's incentive is removed to undertake changes in the composition of its international reserves which would have disequilibrating effects on the countries whose currencies are held as international reserves. A proposal of this type, while it may be used alone, would be most effective as part of a more comprehensive international monetary arrangement. This proposal is modest in that it covers only official holdings of foreign exchange. It makes a small contribution to increasing the stability of the international monetary system. It is believed, however, that although the proposal is modest, it is a significant contribution.

DOI
10.2307/1926631
Volume
44
Issue
1
Pages
98
Sources
openalex crossref

Cite