Abstract: Up till the middle of 1949 the Intra-European Payments Plan functioned reasonably satisfactorily. In the third quarter of 1949, however, the disequilibrium in intra-European payments increased sharply mainly because of the rapid deterioration in the position of the U.K. The period since the devaluations shows striking changes in the pattern of intra-European payments although it is still too early to say whether these changes are lasting. Under the Intra-European payments agreement two distinct types of operation are conducted. First, the balances of individual countries with other individual countries at the end of each month are reduced by compensation operations with the agent operating much in the manner of a clearing house among commercial banks. Second, a system of drawing rights was set up in advance whereby certain countries agreed to make available given amounts of their currencies to certain other countries on condition that, when they did so, they would receive grants of ERP dollars. In the third quarter of 1949, the disequilibrium in Intra-European payments increased mainly because of the rapid deterioration in the position of the United Kingdom.
Publication Year: 1950
Publication Date: 1950-01-20
Language: en
Type: article
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Cited By Count: 1
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