The Economics of the Oil Crisis - download pdf or read online

By T. M. Rybczynski (eds.)

ISBN-10: 134902810X

ISBN-13: 9781349028108

ISBN-10: 1349028126

ISBN-13: 9781349028122

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Additional resources for The Economics of the Oil Crisis

Sample text

2. The "standstill" was first proposed by the United States at the meeting of the Committee of Twenty in Rome, January 1974, and finally agreed upon at the ministerial meeting of the OECD in Paris at the end of May. But it was only agreed for one year. ) 3. One solution would be to channel all transactions with the oil-producing countries through the Bank for International Settlements (DIS) -perhaps employing a weighted average of currencies. The oil-producing countries would build up interest-bearing balances with the DIS upon which they could draw for their current import needs.

Safeguards on Imports and Exports An important category of non-tariff intervention, namely quantitative import restrictions, concerns the avoidance of disruptive market conditions in a particular industry that result from sharp increases in imports of competing products. The growth of trade has greatly accelerated in the postwar period and, with the progress of industrialisation in developing countries, shifts in comparative advantage are increasingly rapid and frequent. In this situation a "safeguard" provision in the GATT that can offer security and equity to both exporting and importing countries would have to be an instrument of change and adjustment.

It follows that the larger is a country's transfer relative to other countries, the more likely is it that it will end up with a payments deficit. In addition one must, obviously. take into account the special demand patterns of the OPEC countries. Changed Pattern of World Demand This analysis can next be combined with the conclusions of the second section. Each country has a primary payments deficit equal to the increased value of its oil imports. If the OPEC countries spend the extra income, this is then transferred in the way described here.

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The Economics of the Oil Crisis by T. M. Rybczynski (eds.)


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