International Clearing Union

E7218

The International Clearing Union was a proposed post–World War II global financial institution designed by John Maynard Keynes to manage international trade imbalances through a supranational currency and automatic adjustment mechanisms.

Jump to: Surface forms Statements Referenced by

Observed surface forms (1)

Surface form Occurrences
clearing union 1

Statements (44)

Predicate Object
instanceOf Keynesian proposal
proposed international financial institution
adjustmentMechanism automatic debits and credits to national accounts in bancor
overdraft facilities for deficit countries
penalties for persistent trade deficits
penalties for persistent trade surpluses
aimedAtProblem asymmetry between creditor and debtor nations
balance‑of‑payments crises
global liquidity shortage
alternativeTo U.S. dollar–centered Bretton Woods design
coreFeature use of a supranational currency unit
currencyType non‑convertible accounting unit for international settlement
designer John Maynard Keynes
documentedIn Keynes’s proposals for an international clearing union
field international economics
monetary economics
goal avoid deflationary pressure from forced deficit adjustment only
create a symmetric international monetary system
encourage both surplus and deficit countries to adjust
prevent competitive devaluations and trade restrictions
historicalOutcome never implemented
superseded in practice by the Bretton Woods system
influenced debates on global reserve currencies
later proposals for Special Drawing Rights
intendedFunction manage international trade imbalances
promote global economic stability
provide a multilateral clearing system for international payments
reduce the need for countries to hold large foreign exchange reserves
negotiationContext Bretton Woods system
surface form: Bretton Woods negotiations
objective minimize reliance on gold as an international reserve asset
support full employment policies in member countries
penaltyInstrument limits on overdrafts for chronic deficit countries
rising charges on excessive credit balances in bancor
proposedByCountry United Kingdom
proposedCurrencyName bancor
proposedInContextOf post–World War II international monetary reform
relatedConcept Keynesian international monetary theory
bancor
International Clearing Union self-linksurface differs
surface form: clearing union
settlementBasis multilateral clearing rather than bilateral settlement
status theoretical proposal
theoreticalFoundation Keynesian views on effective demand and international adjustment
timeProposed early 1940s
wouldHaveHadMembers sovereign states

Referenced by (4)

Full triples — surface form annotated when it differs from this entity's canonical label.

bancor clearingInstitution International Clearing Union
subject surface form: Bancor
John Maynard Keynes proposed International Clearing Union
bancor proposedForInstitution International Clearing Union
subject surface form: Bancor
International Clearing Union relatedConcept International Clearing Union self-linksurface differs
this entity surface form: clearing union