tag:blogger.com,1999:blog-538730199298720474.post5204057086792257795..comments2023-07-18T12:32:15.950+03:00Comments on Monetary research, official sources and relevant material: One Memo - Foreign Relations of the United States, 1973–1976 Volume XXXI, Foreign Economic Policy, Document 85@mortymer001http://www.blogger.com/profile/13047624328777522777noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-538730199298720474.post-32764166235775185412012-01-20T17:49:16.955+02:002012-01-20T17:49:16.955+02:00NIce addition J. Thank you.NIce addition J. Thank you.@mortymer001https://www.blogger.com/profile/13047624328777522777noreply@blogger.comtag:blogger.com,1999:blog-538730199298720474.post-56485152216244222262012-01-20T16:08:58.834+02:002012-01-20T16:08:58.834+02:00The principal objections to such a shift are:
(1)...The principal objections to such a shift are:<br /><br />(1) It should not be negotiated with the French alone, but with other interested countries, some of whose positions on gold have been influenced by our past positions.<br /><br />(2) This policy is in conflict with our own action in selling gold. We are reducing our own holdings of a reserve asset while enabling other countries to make more effective use of theirs for monetary purposes.<br /><br />(3) The danger of a new and higher official gold price becomes more concrete. It is true that such a price, in order to be made to stick, requires a willingness of one or more central banks to buy all the gold that is offered at that price. I doubt that there is such a central bank today. Thus, there seems no great immediate danger of a return to the Bretton Woods system or the gold standard. But it is probable that gold will have been moved closer to the center of the monetary stage.<br /><br />(4) One useful purpose served by a policy of freeing the use of gold is that in times like these we may like to see countries have maximum reserves in order to maintain liberal trade policies. I am tempted to argue that the emergency is sufficiently serious to justify postponing our long-term objectives for the world's monetary system, which involve elimination of gold. But obviously there are means of supplying gold-holding countries with credit that would have the same favorable effect on their trade policies, if the credit terms are made easy enough.<br /><br />http://history.state.gov/historicaldocuments/frus1969-76v31/d79Jhttps://www.blogger.com/profile/17037440628680644516noreply@blogger.com