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6 - A New Order, 1936–1939

Published online by Cambridge University Press:  24 February 2021

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Summary

This chapter focuses on the reciprocal gold facilities created in the weeks after the Tripartite Agreement to enable exchange intervention, viewed as essential for the Agreement to have any chance of success. Each country agreed to convert its currency into gold for other members at a price set each day. The system squared the circle of how to enable countries to intervene in currencies that were not universally convertible into gold and played a crucial role in keeping members on the same page during a time of immense political and economic strain. It established a technical foundation for broader collaboration and was integral to the Tripartite Agreement's success in preventing policymakers from relapsing into the antagonisms of earlier years.

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Monetary War and Peace
London, Washington, Paris, and the Tripartite Agreement of 1936
, pp. 130 - 155
Publisher: Cambridge University Press
Print publication year: 2021

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