We found a match
Your institution may have rights to this item. Sign in to continue.
- Title
Foreign Exchange Guarantees and the Dollar.
- Authors
Beza, Sterie T.; Patterson, Gardner
- Abstract
The article comments on the paper by S. T. Beza and Gardner Patterson, in which they expressed doubts about the value of exchange guarantees. According to the author Beza and Patterson correctly recognize that guarantees would be difficult to negotiate and they might not be universally applicable. Problems would arise in constructing faces between the dollar holdings subject to the guarantee and other dollar holdings. It is necessary to distinguish those particular foreign holders eligible for the guarantee from those who are not eligible, to distinguish those dollar assets held by eligible holders subject to the guarantee from their other dollar assets, to define unambiguous conditions for determining when the guarantee would be invoked, and to determine how payment under the guarantee would be effected. Their first point is that, if the guarantees are credible, dollars would become such an attractive reserve asset that few official foreign institutions would acquire or hold gold as reserves, with the consequence that the U.S. might again be subject to a golden avalanche.
- Subjects
UNITED States; FOREIGN exchange; U.S. dollar; VALUE (Economics); ASSETS (Accounting); NATIONAL parks &; reserves; GOLD reserves
- Publication
American Economic Review, 1962, Vol 52, Issue 5, p1112
- ISSN
0002-8282
- Publication type
Article