London dollar certificates of deposit

Authors

  • P. EINZIG

DOI:

https://doi.org/10.13133/2037-3643/11652

Keywords:

International finance, London dollar certificates, Euro-dollar, reserves, international trade

Abstract

The present article is by way of being an interim report about the latest institutional change in the sphere of international finance. Its subject, the new market in London dollar certificates of deposit, come into existence only in May 1966, and its development has been very slow so far. Nevertheless, based on this limited experience, the author examines the new device and the facilities available for dealing in it. It is theorised that it may represent a major innovation, likely to extensively affect not only the Euro-dollar system, but the system of international finance as a whole. The tentative conclusion is that the new device tends to be moderately beneficial form the point of view of the reserves of the United States. However, its effect on the volume of liquid resources available for international trade and finance is likely to be much more important.


JEL: F30, G20

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Published

2014-02-19

How to Cite

EINZIG, P. (2014). London dollar certificates of deposit. PSL Quarterly Review, 19(79). https://doi.org/10.13133/2037-3643/11652

Issue

Vol. 19 No. 79 (1966)

Section

Editorial

License

 
 
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