World Bank Rate

Press, Volume CIX, Issue 32078, 28 August 1969, Page 16

World Bank Rate

Sir,—ln this discussion I am limited to 150 words. You merely play with words in distinguishing between World Bank and other organisations. The sovereign national governments comprising the United Nations each have their central banks and how else could they act in common policy? Call it consortium but any other name would smell as sweet. Mr Low recognises West Germany’s economic strength as due to orthodox monetary policy techniques “used in recent years.” That means a change. The financial system has so many fronts now to hide behind. What we all want to know is where policy-making decisions are made and why the World Bank puts its rate up instead of following what Mr Low recognises as toe new orthodoxy which has made West Germany strong. The rest of the world is bogged down in the old debt system which strangulates the sane development of national resources.—Yours, etc., W. B. BRAY. Leeston, August 23, 1969. [Mr A. R. Low, Governor of the Reserve Bank of New Zealand, was invited to comment. He replies: “As expected, Mr Bray cannot accept any suggestion that he is at fault and I see no advantage in the bank carrying the subject any further.”]