THE PROBLEM OF INTERNATIONAL LIQUIDITY FOR DEVELOPING COUNTRIES, ESPECIALLY INDIA

International liqidity may, for purposes of analysis, be classified as (a) Primary, (b) Subsidiary, and (c) Ad hoc. In estimating the total quantum of international liquidity particularly from the viewpoint of dveloping countries, we exclude ad hoc liquidity. The major supply of international liquidity is concentrated in the hands of industrial countries; while the major demand for international liquidity arises from developing countries which fall under Article XIV of the I.M.F. The problem of international liquidity, therefore, exists essentially for the developing countries only. This paper suggests policy guidelines to get over the problem.