ABSTRACT
Banks that operate in the Eurodollar market are of course, like all banks, highly respectable and respected. The existence of the Eurodollar market may very well serve to sustain the very forces which cause the Eurodollar market to grow. In the case of the Eurodollar market, however, there is an important feature which is new, if not in principle at least in its order of importance. This chapter describes the state and some of the practices of the Euromarket, and comment at greater length on particular proposals for its reform. Eurobanks deal in currency exchanges and their view of the proper rates must depend as much upon the demand or implied demand for currency to buy and sell debt as upon the demand for currency to buy and sell internationally traded goods. The propensity to count Eurodollar deposits as money has led to many curious propositions.
