This paper, through analysis of the IMF Article 14 Consultation process, aims to clarify how the IMF tried to adjust the UK's macroeconomic policies to get it move to IMF Article 8 status. There are many studies about sterling convertibility, which was inevitable so that the international monetary system could be restored to its function in the postwar world. However, previous studies have paid little attention to the activity of the IMF. As a result, the influence of the "Bretton Woods system," the principles of which were exchange stability, trade liberalization, and multilateral system of payments, on the operations of the major countries' macroeconomic policies has not been sufficiently examined. By focusing on the "universal" framework of macroeconomic policy coordination and reexamining the role of the IMF, this paper tries to present a new perspective on the history of the international monetary system in 1950s, the commonly held image of which has been constructed by focusing only major countries' activities. The consultation with the UK was conducted from 1952 to 1959, and the UK's transition to Article 8 status was realized in February 1961. In this period, the IMF actively participated in the process of removing the UK's exchange restrictions, based on international institutional logic which attaches more importance to "universal interests" (e.g. exchange stabilization and establishment of the multilateral system of payments) than the UK's private interests. In the first half of the 1950s, the IMF positively pursued the establishment of the multilateral payments system, through international monetary cooperation. On the one hand, it required the US, a large creditor country, to modify its commercial policy, and on the other, it called for the UK to make sterling convertible by making use of the Fund's resources. At this stage, the IMF did not firmly request the UK to make efforts to check inflation and relax exchange restrictions. However, the IMF changed its strategy in the mid-1950s when it faced the UK's economic vulnerabilities in contrast to the developing international economic situation in which the dollar shortage was gradually reduced. Based on the Monetary Approach, it did insist that the UK should endeavor to attain monetary stability. Then, once monetary stability was achieved, the IMF immediately launched the removal of the dollar discrimination maintained by the UK. This paper suggests that the supranational framework of macroeconomic policy coordination which adjusted the major countries' strategies to the design of the IMF was behind the stability and establishment of the international monetary system in 1950s.
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