The Revived Bretton Woods System's First Decade

Michael Dooley, David Folkerts-Landau and Peter Garber

No 20454, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The revived Bretton Woods framework we proposed in 2003 remains a useful way to understand the international financial system. We document that the system survived the 2008 crisis. Looking forward, we argue that the system will continue to evolve as we expected. China is likely to graduate from the periphery to the center in the next few years. This graduation process could be smooth or associated with recurrent financial crises. During this transition the magnitude of net capital outflows from the periphery will continue to depress real interest rates in industrial countries at every phase of the business cycle. Finally, recent policy initiatives suggest that India is poised to replace China as the dominant periphery country.

JEL-codes: F21 F3 F43 F63 (search for similar items in EconPapers)
Date: 2014-09
New Economics Papers: this item is included in nep-mon and nep-opm
Note: IFM
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Citations: View citations in EconPapers (7)

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