POSSIBLE MEANS AND SOLUTIONS FOR AVOIDING CURRENCY WARS
POSSIBLE MEANS AND SOLUTIONS FOR AVOIDING CURRENCY WARS
Author(s): Mihai DraguSubject(s): Economy
Published by: Editura Universitaria Craiova
Keywords: currency wars; stability; global governance; global imbalances.
Summary/Abstract: What is needed is a coordinated plan of action, involving all trading partners to ensure a balanced global recovery. The plan must address three interconnected issues: the exchange rate system, global imbalances and excessive reserve accumulation. Few solutions in response to these issues: - create an emergency markets reserve fund, from which member countries would be able to withdraw with no conditionality; - create a global governance mechanism to prevent countries from running excessive current account imbalances; - give surplus countries greater exchange rate flexibility; - enhance the role of the renminbi as an international currency; - strengthen the capacity of IMF to act as a lender of last resort, allowing it to lend to solvent countries against collaterals.
Journal: Analele Universităţii din Craiova - Seria Ştiinţe Economice
- Issue Year: XXXIX/2011
- Issue No: _
- Page Range: 1-6
- Page Count: 6
- Language: English
