Bénassy-Quéré, Agnès and Pisani-Ferry, Jean. (2011) What international monetary system for a fast-changing world economy? Bruegel Working Paper 2011/06, April 2011. [Working Paper]
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Abstract
Though the renminbi is not yet convertible, the international monetary regime has already started to move towards a 'multipolar' system, with the dollar, the euro and the renminbi as its key likely pillars. This shift corresponds to the long-term evolution of the balance of economic weight in the world economy. Such an evolution may mitigate some of the flaws of the present (non-) system, such as the rigidity of key exchange rates, the asymmetry of balance of-payments adjustments or what remains of the Triffin dilemma. However it may exacerbate other problems, such as short-run exchange rate volatility or the scope for ‘currency wars’, while leaving key questions unresolved, such as the response to capital flows global liquidity provision. Hence, in itself, a multipolar regime can be both the best and the worst of all regimes. Which of these alternatives will materialise depends on the degree of cooperation within a multilateral framework.
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Item Type: | Working Paper |
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Uncontrolled Keywords: | International monetary system; capital controls. |
Subjects for non-EU documents: | EU policies and themes > External relations > international economy EU policies and themes > Policies & related activities > economic and financial affairs > Single Market > capital, goods, services, workers Countries > China EU policies and themes > Policies & related activities > economic and financial affairs > financial crisis 2008-on/reforms/economic governance |
Subjects for EU documents: | UNSPECIFIED |
EU Series and Periodicals: | UNSPECIFIED |
EU Annual Reports: | UNSPECIFIED |
Series: | Series > Bruegel (Brussels) > Working Papers |
Depositing User: | Phil Wilkin |
Official EU Document: | No |
Language: | English |
Date Deposited: | 04 Apr 2011 10:33 |
Number of Pages: | 44 |
Last Modified: | 04 Apr 2011 10:33 |
URI: | http://aei.pitt.edu/id/eprint/30831 |
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