SDRs, interest and the aid link: further analysis
In a recent article, John Williamson advocated a monetary reform package that includes both a development assistance link and a competitive interest rate on SDRs. The present note considers explicitly the manner in which the net transfer of resources for development would decline over time with a li...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Associazione Economia civile
2013-12-01
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| Series: | PSL Quarterly Review |
| Subjects: | |
| Online Access: | https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/11451 |
| _version_ | 1811172524153634816 |
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| author | P. ISARD E.M. TRUMAN |
| author_facet | P. ISARD E.M. TRUMAN |
| author_sort | P. ISARD |
| collection | DOAJ |
| description | In a recent article, John Williamson advocated a monetary reform package that includes both a development assistance link and a competitive interest rate on SDRs. The present note considers explicitly the manner in which the net transfer of resources for development would decline over time with a link under the normal net use procedure for assessing interest and the modified procedure that Williamson proposes. The authors examine the implications of these two procedures. They argue that interest payments by LDCs on their use of SDRs allocated under an aid link could be subsidised to increase the development assistance content of the link without impairing the relative attractiveness of the SDR as a reserve asset.
JEL: E42, E43, F35
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| first_indexed | 2024-04-10T17:31:37Z |
| format | Article |
| id | doaj.art-9f1c6bfa368d49c79fb32b15e1fe9eb0 |
| institution | Directory Open Access Journal |
| issn | 2037-3635 2037-3643 |
| language | English |
| last_indexed | 2024-04-10T17:31:37Z |
| publishDate | 2013-12-01 |
| publisher | Associazione Economia civile |
| record_format | Article |
| series | PSL Quarterly Review |
| spelling | doaj.art-9f1c6bfa368d49c79fb32b15e1fe9eb02023-02-03T16:44:56ZengAssociazione Economia civilePSL Quarterly Review2037-36352037-36432013-12-012610810.13133/2037-3643/11451SDRs, interest and the aid link: further analysisP. ISARDE.M. TRUMANIn a recent article, John Williamson advocated a monetary reform package that includes both a development assistance link and a competitive interest rate on SDRs. The present note considers explicitly the manner in which the net transfer of resources for development would decline over time with a link under the normal net use procedure for assessing interest and the modified procedure that Williamson proposes. The authors examine the implications of these two procedures. They argue that interest payments by LDCs on their use of SDRs allocated under an aid link could be subsidised to increase the development assistance content of the link without impairing the relative attractiveness of the SDR as a reserve asset. JEL: E42, E43, F35 https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/11451SDRspecial drawing rightinterest paymentsless developed countriesaid link |
| spellingShingle | P. ISARD E.M. TRUMAN SDRs, interest and the aid link: further analysis PSL Quarterly Review SDR special drawing right interest payments less developed countries aid link |
| title | SDRs, interest and the aid link: further analysis |
| title_full | SDRs, interest and the aid link: further analysis |
| title_fullStr | SDRs, interest and the aid link: further analysis |
| title_full_unstemmed | SDRs, interest and the aid link: further analysis |
| title_short | SDRs, interest and the aid link: further analysis |
| title_sort | sdrs interest and the aid link further analysis |
| topic | SDR special drawing right interest payments less developed countries aid link |
| url | https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/11451 |
| work_keys_str_mv | AT pisard sdrsinterestandtheaidlinkfurtheranalysis AT emtruman sdrsinterestandtheaidlinkfurtheranalysis |