The Debate on the International Monetary System

Keynes’ original proposal envisaged a global bank (the International Clearing Union or ICU), which would issue its own currency (bancor), based on the value of 30 representative commodities including gold, exchangeable against national currencies at fixed rates. All trade accounts would be measured in bancor, while each country would maintain a bancor account vis-à-vis the ICU (expected to be balanced within a small margin), and also have an overdraft allowance vis-à-vis the ICU. When countries experienced large trade deficits (more than half of the bancor overdraft allowance), they would pay interest on their accounts, undergo economic adjustments (possibly also capital controls) and devalue their currencies. Conversely, countries with large trade surpluses would also be subject to a similar charge and required to appreciate their exchange rates. This mechanism would bring in a smooth symmetry of adjustments across countries and avoid global imbalances.

Interesting new staff position paper from the Fund.

The Basics of Macroeconomic Accounts

The System of Macroeconomic Accounts Statistics: An Overview

Summary: Designed to meet the basic needs of economists and statisticians, this pamphlet is unique in providing an explanation of the key principles underlying macroeconomic statistics when viewed as an integrated system. It highlights the interrelationships between the various sectors and provides a bridge linking the various macroeconomic accounts statistics-national accounts, balance of payments, government finance statistics, and monetary and financial statistics-to assist the reader in understanding the main concepts underlying these statistics. It does so by simplifying many of the concepts, explaining common features and differences, showing how the four key statistical areas harmonize, and providing examples to demonstrate the practical application and uses of the concepts within the conceptual framework. The pamphlet completely updates Pamphlet No. 29, Macroeconomic Accounts: An Overview, by Poul Hølst-Madsen, which was published in 1985.