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Why Not Do It Better

global balance-of-payments problems of the countries, it is better than the plans that used to be made at one time, based on the expectation that a country like the USA would underwrite the final liquidity requirements, Bhatt proposes adjustments in trade, following credit advanced by the surplus members. Such adjustments will require conditions which arc no less unrealistic than those of the Ricardian adjustment process. There will be persistent surplus countries, unwilling to change their trade policies, and persistent deficit countries unable to do so. The basic requirement of a payments union is dovetailing of deficits and surpluses, horizontally and over lime. The prospects do not appear to be bright, either for a payments union for all the developing countries from Asia to Latin America, or even for a. limited regional one for Asian countries only.

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