DislikedMan! excellent article you have posted! the world just can repeat this kind of situation just to support the US financial agenda against safety and interests of the rest of the world
"As for today's crisis, the mess we face is a direct result of the quasi-fixed exchange regime that already exists, and which is known to FX specialists as 'Bretton Woods II' . It has been playing havoc with global capital flows for the last decade."Ignored
DislikedI'm amazed people even bother...
It's almost like it's the first time a politician huffs and puffs a bit.
Pushing your own political agenda and behaving all important is simply as casual a thing to do for politicians as getting up in the morning.
Also people should be aware that 99% of the journalistic reporting flood that ensued around this is simply "me too" reporting, various editorials are opinions, etc pp...
These people write, because they get paid to / need to. It's what they do.
It's all 100% hot air. Nobody is going to "eliminate...Ignored
DislikedCapitalism without free markets is not possible. And a free market is not a backyard, was never and will never be. Warnings about the housing bubble were around for years, and all the experts and politicians denied it. They were sleeping and now they blame the speculators. Good night Mr. Sarkosy.Ignored
DislikedThe free market is the essence of capitalism and its when the markets are rigged (by governments or cartels) that the problems occur....Ignored
Although a number of countries, including China and Russia, have suggested replacing the dollar as the world's reserve currency, the UNCTAD report is the first time a major multinational institution has posited such a suggestion.
In essence, the report calls for a new Bretton Woods-style system of managed international exchange rates, meaning central banks would be forced to intervene and either support or push down their currencies depending on how the rest of the world economy is behaving.
The proposals would also imply that surplus nations such as China and Germany should stimulate their economies further in order to cut their own imbalances, rather than, as in the present system, deficit nations such as the UK and US having to take the main burden of readjustment.
"Replacing the dollar with an artificial currency would solve some of the problems related to the potential of countries running large deficits and would help stability," said Detlef Kotte, one of the report's authors. "But you will also need a system of managed exchange rates. Countries should keep real exchange rates [adjusted for inflation] stable. Central banks would have to intervene and if not they would have to be told to do so by a multilateral institution such as the International Monetary Fund."
The proposals, included in UNCTAD's annual Trade and Development Report , amount to the most radical suggestions for redesigning the global monetary system.
Although many economists have pointed out that the economic crisis owed more to the malfunctioning of the post-Bretton Woods system, until now no major institution, including the G20 , has come up with an alternative.