Wednesday, January 18, 2017

CIA - INTERNATIONAL FINANCE SERIES NO. 34 THE WORLD GOLD MARKET: ANNUAL REVIEW FOR 1971

Intelligence memorandum

Special Drawing Rights: Paper Gold in Action







3 comments:

  1. "(SDR) provided a new type of liquidity as permanent as Gold itself" ?!?

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    1. Actually it did, in a way. The issue about the liquidity needs and provisions was a very much studied subject. The "paper gold" term did not have such a bad connotation like today. If you are interested you can read about Mundel´s IMF research group on this issue or Machlup group options researched/presented. The dollar came as a winner and built a resilient (assymetrical) system, it had its pro and cons but worked for more or less 45ys so not bad but it had also negative externalities US was able to abuse (Triffin), export of inflation, our ccy your problem, volatility, etc.

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