Abstract

Monetary Conference of Belgrade Governed by the Worldwide Increase of Inflation

The Annual Meetings of the International Monetary Fund and the World Bank Group together with the meetings preceding them of the IMF Interim Committee, the Group of Ten, Working Party 3 of the OECD and the Development Committee took place this year in Belgrade, the capital city of Yugoslavia, from September 29 to October 5. As in former years, the topics dominating the monetary conference were the situation of the world economy and the international balance of payments adjustment process. The Ministers and central bank Governors also discussed the establishment of a substitution account within the IMF and interest subsidies for loans under the Supplementary Financing Facility. The Executive Committee of the IMF was entrusted with the task of elaborating a plan by the next meeting with respect to both these topics on the agenda and to seek ways and means of subsidizing interest payments. Despite the lack of spectacular decisions the conference may nevertheless prove to be a milestone in international monetary and financial affairs. The appeal of the Managing Director of the Fund to reduce price inflation in all countries even if this involves losses in terms of growth and employment met with broad agreement. It can be considered an encouraging sign that, despite the imminent danger of a levelling off or stagnation in economic growth, the fight against inflation is to be given top priority