Explanation:

The academic circles throughout the world have remained greatly concerned with the problem of international liquidity.

The problem is, by no means, of a recent origin. One of the basic factors for the breakdown of the gold standard in 1931 was the failure of the leading gold standard countries to cope effectively with the problem of international liquidity, which was created by the inadequacy of gold reserves with the debtor countries and those which had balance of payments deficit coupled with the reluctance to lend on the part of those which were strongly placed in the matter of international payments.