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This paper discusses impact of purchasing power on deferred payments. The importance of the economic consequences for the economy of the adoption of purchasing power guarantees would, of course, depend on the range within which these guarantees were applied. Any practical proposals are therefore predicated on the assumption that, for the country in question, there is uncertainty about future general price movements. The problem which purchasing power guarantees are intended to solve is shown in its simplest form in the settlement of a private debt. In countries suffering from inflation, the improvement in the lender–borrower relationship would also be strengthened, since, with a purchasing power clause in the contract, the stigma of usury that would attach to any attempt to insist on high nominal rates of interest in order to ensure a proper real return would be avoided. The legal and social sanctions against usury in money terms give rise to a paradox in discussing the use of a purchasing power clause. The analytical discussion seems to show that, if anything, the borrower would gain more than the lender from the use of the clause—simply because interest payments are likely to be larger relative to his net income, and to have their real value stabilized would have a greater stabilizing effect on real income.

Aggregate Factor Income Distribution --- Budget planning and preparation --- Budget Systems --- Budget --- Budgeting & financial management --- Budgeting --- Business Taxes and Subsidies --- Capital budget --- Exchange taxes --- Expenditure --- Expenditures, Public --- Exports and Imports --- Finance --- Income tax --- Income --- International economics --- Macroeconomics --- National accounts --- National Budget --- National Government Expenditures and Related Policies: General --- Public finance & taxation --- Public Finance --- Public financial management (PFM) --- Purchasing power --- Taxation --- Taxation, Subsidies, and Revenue: General --- Taxes --- United States

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This paper reviews key findings of the IMF’s Annual Report for the fiscal year ended April 30, 1956. The report highlights that the world payments situation has in fact improved, restrictions have been further relaxed, the transferability of important currencies has been extended, and discrimination, especially that resulting from bilateral arrangements, has had less influence on the direction of trade. Progress in extending multilateral trade and payments has thus been maintained, although during the year there was no addition to the list of IMF members that have established formal convertibility of their currencies.

Agricultural commodities --- Agriculture: General --- Bank credit --- Banks and Banking --- Cement --- Ceramics --- Commodities --- Credit --- Currencies --- Expenditure --- Expenditures, Public --- Exports and Imports --- Exports --- Farm produce --- Finance --- Glass --- Gold --- Government and the Monetary System --- Imports --- International economics --- International trade --- Investment & securities --- Investments: Commodities --- Investments: Metals --- Macroeconomics --- Metals and Metal Products --- Monetary economics --- Monetary Policy --- Monetary Policy, Central Banking, and the Supply of Money and Credit: General --- Monetary Systems --- Money and Monetary Policy --- Money --- National Government Expenditures and Related Policies: General --- Payment Systems --- Public expenditure review --- Public finance & taxation --- Public Finance --- Regimes --- Standards --- Trade: General --- United States