Chapter

SDRs after the Second Amendment

Christopher M.D. Wilkie

in Special Drawing Rights (SDRs)

Published in print November 2011 | ISBN: 9780199606467
Published online January 2012 | e-ISBN: 9780191731648 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780199606467.003.0007
SDRs after the Second Amendment

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Not only SDRs, but the IMF itself enjoyed prospectively greater powers in the late 1970s. These were illusory, however, as responsibility for liquidity provision, particularly for the creditworthy, was driven by the private sector. But as the twenty‐first century dawned, the needs of the international monetary system were very different. At the 2009 G20 meetings, the Fourth Amendment to the IMF Articles of Agreement was finally adopted, resulting in an SDR allocation for new IMF members. More importantly, a ‘special’ SDR allocation of $250 billion in SDRs was a crucial component of the global response to the international financial crisis. The SDR—and indeed IMF—were back at the top of the international economic agenda.

Keywords: SDR currency basket; Third Amendment to the IMF Articles of Agreement; Fourth Amendment to the IMF Articles of Agreement; International financial crisis

Chapter.  22686 words.  Illustrated.

Subjects: Macroeconomics and Monetary Economics

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