Managing Global Money: Essays in International Financial Economics

308 Pages·1988·34.648 MB·English

by  Graham Bird (auth.)

MANAGING GLOBAL MONEY
Also by Graham Bird
*THE INTERNATIONAL MONETARY SYSTEM AND THE LESS
DEVELOPED COUNTRIES
THE QUEST FOR ECONOMIC STABILISATION: The IMF and the Third
World (with Tony Killick, Jennifer Sharpley and Mary Sutton)
*WORLD FINANCE AND ADJUSTMENT: An Agenda for Reform
*INTERNATIONAL FINANCIAL POLICY AND ECONOMIC
DEVELOPMENT: A Disaggregated Approach
*INTERNATIONAL MACROECONOMICS: Theory, Policy and Applications
*Also published by Palgrave Macmillan
Managing Global
Money
Essays in International Financial Economics
Graham Bird
Professor of Economics
University of Surrey
M
MACMILLAN
PRESS
© Graham Bird 1988
Softcover reprint of the hardcover 1st edition 1988
All rights reserved. No reproduction, copy or transmission
of this publication may be made without written permission.
No paragraph of this publication may be reproduced, copied
or transmitted save with written permission or in accordance
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issued by the Copyright Licensing Agency, 33-4 Alfred Place,
London WClE 7DP.
Any person who does any unauthorised act in relation to
this publication may be liable to criminal prosecution and
civil claims for damages.
First published 1988
Published by
THE MACMILLAN PRESS LTD
Houndmills, Basingstoke, Hampshire RG21 2XS
and London
Companies and representatives
throughout the world
British Library Cataloguing in Publication Data
Bird, Graham, 1947-
Managing global money: essays in
international financial economics.
1. International finance
I. Title
332' .042 HG3881
ISBN 978-1-349-09590-2 ISBN 978-1-349-09588-9 (eBook)
DOI 10.1007/978-1-349-09588-9
To Heather
Contents
Preface ix
1 Introduction 1
Part I Balance of Payments Theory and Policy
2 The Mix between Adjustment and Financing:
Geometrical Presentations of the Factors Accounting
for Different Choices made by Developing and
Developed Countries 7
3 Balance of Payments Policy in Developing Countries 18
Part II The International Monetary Fund
4 A Role for the International Monetary Fund in
Economic Development 63
5 Fund Financing and Financing the Fund 84
6 An Analysis of Drawings on the International
Monetary Fund by Developing Countries 104
Part III The Special Drawing Rights Account
7 An Analysis of the Welfare Gains from Special
Drawing Rights 115
8 SDR Distribution, Interest Rates and Aid Flows 124
9 The Role of SDRs in Financing Commodity
Stabilisation 134
Part IV Borrowing from the Private Sector
10 Developing Country Borrowing from Private Markets:
Key Aspects and Prospects for the Future 147
11 Oil Prices and Debt 183
Part V The International Economic Order
12 The Changing International Economic Order and the
Interests of Developing Countries 201
vii
viii Contents
13 Low-Income Countries and International Financial
Reform 223
14 Beyond the Brandt Report: A Strategy for World
Economic Development 254
Notes and References 269
Index 302
Preface
This book represents a response to an invitation by Tim Farmiloe of
Macmillan to produce a collection of some of my papers and articles.
It attempts to amalgamate these under a limited number of specific
themes in international financial economics. By choosing related
issues, the hope is that the book retains some claim to being a
coherent 'whole' rather than a collection of loosely related bits and
pieces. As such it is also hoped that the book will be of some interest
to students of international financial affairs in general rather than just
students of Graham Bird!
Various people have shaped my thinking on the issues discussed in
the book or have commented on one or more of the chapters. I would
like to thank, in particular, Gerry Helleiner, Nicholas Hope, Tony
Killick, Charles Larkum, Danny Leipziger, Geoffrey Maynard, Bah
ram Nowzad, John Spraos, Frances Stewart, Tony Thirlwall and
John Williamson. Separate acknowledgements are attached to some
of the individual chapters.
I should also like to thank the following publishers and journals for
allowing me to reproduce material which was originally published by
them.
The Indian Economic Review Chapter2
Overseas Development Institute Chapter3
Banca Nazionale del Lavoro Quarterly Review Chapter4
World Development Chapter6
Economia Internazionale Chapter?
The World Economy Chapter8
Journal of World Trade Law Chapter9
Royal Bank of Scotland Review Chapter 11
Journal of Developing Areas Chapter 13
Millennium Chapter 14
Thanks are also due to the World Bank for allowing me to publish, as
Chapter 10, a report which was originally written for them.
My children would not forgive me for producing a book in which
their names failed to appear, so here they are: Alan, Anne and
Simon. Last, but not least, I must mention the help provided by my
ix
X Preface
secretary, Liz Blakeway, in preparing the manuscript. Her kind
efficiency is so consistent that she runs the risk of being taken for
granted.
Guildford, Surrey GRAHAM BIRD