Wednesday, May 31, 2017

Jomo Kwame Sundaram — Why International Financial Crises?

Raises some good questions. 
The leading international monetary economist of the post-war period, Robert Triffin, described the post-1971 arrangements as amounting to a “non-system.” Now, with the international monetary system essentially the cumulative outcome of various, sometimes contradictory and ad hoc responses to new challenges, the need for coordination is all the more urgent.
Makes a case for more concerted action now that the world is operating under a "non-system." 

I would not call it a non-system but a highly flexible system that resist simple analysis. 

The gold standard for international settlement resulted in a system that was simpler to model, but it was much more brittle, which is a reason it broke down.

Why International Financial Crises?
Jomo Kwame Sundaram

1 comment:

Andrew Anderson said...


Rather, why wouldn't sham liabilities wrt the non-bank private sector make banks a menace to prosperity and peace? As they have been for centuries?