Working Paper Number
The main objective of the present paper is to ask whether the Currency) Union scheme prepared by Keynes in the Forties, “Keynes Plan”, may still i.e. the Clearing (or at least in principleprovide useful remedies for this “terrorist” type of international imbalances. This will be done in two stages. Firstly, in section 2, the origins of international disequilibria are investigated. The purpose is to enquire whether current international monetary arrangements may generate some of the imbalances referred to above, because of the mechanisms built into them. Secondly, section 3 applies the remedies envisaged by the “Keynes Plan” to this source of international disequilibrium, and tries to assess their implications for current global imbalances. Section 4 concludes.