Northwest of Suez: The 1956 Crisis and the IMF
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Summary:
Egypt’s nationalization of the Suez Canal in 1956 and the failed attempt by France, Israel, and Britain to retake it by force constituted a serious political crisis with significant economic consequences. For the United Kingdom, it engendered a financial crisis as well. That all four of the combatants sought and obtained financial assistance from the IMF was highly unusual for the time and had a profound effect on the development of the Fund. This case study illustrates the complexities in isolating the current account as the basis for determining a balance of payments “need” and shows that the speculative attack on sterling—and the Fund’s response to it—were remarkably similar to financial crises in the 1990s.
Series:
Working Paper No. 2000/192
Subject:
Balance of payments Banking Credit Currencies Current account Exchange rates Financial crises Foreign exchange Money
English
Publication Date:
December 1, 2000
ISBN/ISSN:
9781451859751/1018-5941
Stock No:
WPIEA1922000
Pages:
29
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