Architect of the European Payments Union

Abstract In 1946, Robert Triffin went on to the International Monetary Fund, where he became head of the Exchange Control Division, before moving to Paris to lead the International Monetary Fund’s Representative Office in Europe. Thereafter, he was a special adviser to the (US) Economic Cooperation Administration in Paris. During these years, his focal point of interest was the European Payments Union (EPU). In his analysis of postwar Europe, Triffin emphasized that several structural factors, especially the low level of gold and dollar reserves and weak industrial capacity, impeded the successful operation of market forces. He favored a pragmatic regional approach with the EPU, giving priority to the abolition of bilateral trade and payment restrictions. Triffin played a key role in the EPU negotiations, especially with his proposal for the EPU unit of account.