ABSTRACT
Precarious as the present state of the international monetary system may be (or non-system, as some would describe it), it is as well to keep in mind the fact that there are even greater economic perils facing the international community. These are due to the conflicts and tensions between the major powers on questions of macro-management of the world economy, the large current trade imbalances and the protectionism to which they give rise, and above all the failure of the international community to develop a rational long-run strategy for dealing with the world debt crisis, as a result of which the Third World has been in a state of persistent economic depression for most of the present decade and no end of the problem is in sight. We cannot enter into these matters because our agenda concerns the system, not the behaviour of the members of the system. But one has to be careful not to blame the system for the policy errors of its members. No doubt the system should be designed in such a way as to make it easier for members to follow harmonious policies aiming at full employment but no system can overcome a fear of the consequences of full employment.
