Abstract

The Role of the InternationalMonetary Fund after the Partial-Reform of the Monetary System

For some time an increasing number of voices has demanded the expansion of the International Monetary Fund with the object of enabling it to play a greater part than hitherto in the financing of existing balance-of-payments deficits, and also to exercise more far-reaching supervision functions. The report deals with three aspects of this issue: (1) The nature and scope of the IMF’s financial activities within the framework of the general credit facilities and the special facilities are depicted and explained; (2) the most important amendments to the IMF statutes are dealt with, which take effect in 1977 with respect to the exchange rate system, the role of gold and the special drawing rights, the fourth general quota increase and the temporary extension of normal facilities for drawing on the IMF; (3) the role of the IMF in the future field of monetary policy is ventilated with regard to an expansion of balance-of-payments credits, a strict supervision of exchange rates, and the granting of credits by commercial banks and the like. A resumee of the report shows that the IMF will probably under go a renaissance in the future and assume a stronger leadership role in world monetary policy. All the more since there is no other institution which can exert genuine pressure on the economic policy of deficit countries.