228:, rising interest payments to the ICB Reserve Fund, forced gold sales, and capital export restrictions. For chronic creditors, it would include currency appreciation and payment of a minimum of 5 percent interest on excess credits, rising to 10 percent on larger excess credits, to the ICB's Reserve Fund. Keynes never believed that creditors would actually pay what in effect were fines; rather, he believed they would take the necessary actions ... to avoid them.
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224:... Once initial limits had been breached, deficit countries would be allowed to depreciate, and surplus countries to appreciate their currencies. This would make deficit country goods cheaper, and surplus country goods more expensive, with the aim of stimulating a rebalancing of trade. Further bancor debit or credit position breaches would trigger mandatory action. For chronic debtors, this would include obligatory
312:—the difficulty faced by reserve currency issuers in trying to simultaneously achieve their domestic monetary policy goals and meet other countries' demand for reserve currency. A similar analysis can be found in the Report of the United Nation's "Experts on reforms of the international monetary and financial system" as well as in the
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Each item a member country exported would add bancors to its ICB account, and each item it imported would subtract bancors. Limits would be imposed on the amount of bancor a country could accumulate by selling more abroad than it bought, and on the amount of bancor debt it could rack up by buying
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could be exchanged for bancors, but bancors could not be exchanged for gold. Individuals could not hold or trade in bancor. All international trade would be valued and cleared in bancor. Surplus countries with excess bancor assets and deficit countries with excess bancor liabilities would both be
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183:, as well as a non-monetary interpretation of the depression, and finally an alternative to a monetary policy for meeting the depression. Keynes believed that in times of heavy
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expressed interest in the idea of greater use of SDRs as a reserve. However, he was criticized severely for this in the United States, and the dollar lost 5 cents against the
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195:. By closer government control of international trade and the movement of funds, the Keynesian policy would be more effective in stimulating individual economies.
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charged to provide symmetrical incentives on them to take action to restore balanced trade. In the words of Benn Steil,
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The Battle of
Bretton Woods: John Maynard Keynes, Harry Dexter White, and the Making of a New World Order
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The Battle of
Bretton Woods: John Maynard Keynes, Harry Dexter White, and the Making of a New World Order
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Collected Writings, Volume XXV: Activities, 1940–44: Shaping the Post-war World: The Clearing Union
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was unpegged from gold, the United States was incentivized to run high government spending and high
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Keynes's proposal has been revived. Its proponents have argued that since the end of the
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called Keynes's bancor approach "farsighted" and proposed the adoption of
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John
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Bancor would not be an international currency. It would rather be a
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MarketWatch, Lisa
Twaronite, Polya Lesova, &, William L. Watts.
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more than it sold. This was to stop countries building up excessive
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in exchange markets following his statements. He and
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616:"Reserve Accumulation and International Monetary Stability"
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Crashed: How a Decade of
Financial Crises Changed the World
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433:(Princeton: Princeton University Press, 2013), pp. 143-44.
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420:(Princeton: Princeton University Press, 2013), p. 143.
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shortly afterwards backtracked
Geithner's comments.
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conceptualised in the years 1940–1942 and which the
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271:Reform the International Monetary System
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480:Tooze, Adam (2018).
398:on 23 September 2015
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222:world trade
163:system—the
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688:. London.
562:BIS Review
521:29 January
498:1039188461
348:References
253:Since the
99:March 2009
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456:0013-0613
371:Economica
261:when the
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157:banque or
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553:(2009).
461:12 April
342:Spesmilo
320:See also
267:deficits
218:deficits
171:Overview
161:clearing
58:"Bancor"
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573:2010
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