Problems of international finance / edited byJohn Black and Graeme S. Dorrance

Annual Conference of the International Economics, Study Group.

This volume studies several aspects of the current problems concerning international finance.
Robert Z. Aliber considers the role of international finance in allowing adjustment to economic shocks to be spread over time so as to reduce costs of adjustment. He discusses the problems which have arisen because of the growth of a large volume of international debt without any institution able to provide quality regulation or to perform the lender-of-last-resort function of national central banks. Geoffrey W. Maynard considers the increasing role of banks in inter national finance, especially in recycling the OPEC surpluses since 1973, and examines the problems arising from flexible exchange rates and high and fluctuating interest rates.

David T. Llewellyn analyses the motives of the various parties to inter national loans the ultimate lenders, the ultimate borrowers, and the institutions which provide financial intermediation and examines the relations between these groups.

K. Alec Chrystal considers the non-speculative motives for holding foreign money, and discusses the development of international monies. Nicholas C. Hope and David W. McMurray look at the place of inter national lending in financing the non-oil developing countries. Bahram Nowzad stresses the problems of debt burden for these countries.

Kate Phylaktis and Geoffrey E. Wood examine the theory of the operation of exchange controls on capital movements under different exchange rate regimes.

Finally Emmanuel Pikoulakis considers the theory of monetary and fiscal policies in an open economy with a flexible exchange rate. The general consensus is that current problems in international finance, while serious, are not out of control, and that there is reason to hope that the world financial system can find ways of surviving its current difficulties.