Multilateral Clearing - Schumacher Center for a New Economics

In the following article, Schumacher discusses a method for achieving greater international co-operation. War, he believes, has underlying economic causes which are partly due to faulty thinking- praising the rich and powerful surplus countries and condemning the weak deficit countries. In order to achieve world peace, Fritz argues that is essential that world trade be organized on a multilateral rather than bilateral basis, and that order would be maintained by a central banking and clearing system which would ensure that all short-term imbalances tend towards long-term balance.