The Welfare Economics of Monetary Transfers and Reversed Transfers.

The article discusses the welfare economics of monetary transfers and reversed transfers in Europe. The Oil Producing and Exporting Countries increased the world price of oil in 1973-74 which has created transfer problems that are of national and international concern. Transfer theory, where transfers are made in one period and reversed in the next, has aided in the question of how the welfare of a country is affected by the stabilization of exchange rate through foreign exchange reserves. In reversed transfer there is one country benefiting while the other looses.