In this paper it is argued that there exists a systematic relationship between changes in the world-wide aggregate of international reserves and the rate of world-wide inflation. While the volume of international reserves in existence has no direct effect on price levels, the changes in national...

The purpose of this paper was to examine if there was a fundamental shift in the demand for international reserves of countries in 1973 because of the change in the international monetary system from one of generally fixed exchange rates to one of greater exchange rate flexibility. Particular...