ABSTRACT
Macmillan Report recommends the Exchange Equalisation Fund. The establishment of the Exchange Equalisation Fund was complementary to the Ottawa policy in maintaining the international position of the pound sterling on a paper basis. The Ottawa Monetary Report had specified low rates of interest as the principal monetary factor which could contribute towards a rise in the wholesale price level. The Exchange Equalisation Fund assisted the Ottawa policy in another manner. Under the Ottawa policy the stabilisation of the international exchange rates was to be effected through a common price policy of the participating nations. The position of the countries on the gold bloc is the most difficult currency problem of the day. While all other countries are beginning to experience a feeling of revival, the depression in Western Europe grows deeper. It will need the helpful and sympathetic co-operation of all nations to ease the difficulties of the transition for them when it comes.
