Rethinking Bretton Woods | Mon, Jul 25, 2011
In a recently -published paper "Adapting the International Monetary System to 21st Century Challenges," it is argued that four key challenges have determined more intense debate and calls for reform of the international monetary system. The paper, UN DESA Working Paper No. 104 (ST/ESA/2011/DWP/104), states that these challenges have either appeared or become more acute in the beginning of this century, and satisfactory reforms of the international monetary system will need to address them. Such challenges are: ensuring an orderly exit from global imbalances, facilitating more complementary adjustments between surplus and deficit countries without recessionary impacts, better supporting international trade by reducing currency volatility and better providing development and climate finance. After describing them, the paper proposes several reforms to enable the international monetary system to better respond to these challenges.