International Monetary Reform and the Stabilization Problem and Discussions

When the assignment to write about international monetary reform and the stabilization problem was accepted, it was hoped that by the time this paper had to be submitted the main features of a comprehensive and well-balanced reform of the international monetary system would have been determined. Unfortunately, things have not worked out that way. The reform proposals, as set forth in the Outline of ReformI accompanying the report which the Committee of Twenty, at its final meeting on June 13, !974, approved for submission to the Governors of the Fund, fall into three categories, differing in the degree of approval which they have received from the Committee. Part I of the Outline indicates the general direction in which the Committee believes the international monetary system "could" evolve in the future. It consists, in the main, of a broadly worded statement of principles, with a brief presentation of alternative solutions for some of the main problems. Part II of the Outline sets out the steps which the Committee is agreed should be taken immediately. It adopts certain of the principles of Part I, sometimes in modified form, as suitable for immediate application, approves certain institutional changes, calls for certain matters to be studied, and asks that draft amendments of the Articles of Agreement be prepared on certain topics. Finally, the Outline contains several Annexes, with illustrative schemes and operational detail relating to various aspects of Part I. These have been prepared by the Chairman and Vice-Chairmen of the Deputies, but have not been approved by the Committee. At this point, it appears likely that the reform of the international monetary system will be a long drawn out, piecemeal affair which may