Emerging Market Economies and the Reform of the International Financial Architecture: The “Exorbitant Privilege” of the Dollar Is Only the Symptom of a Structural Problem

Jan Kregel

Ensayos Económicos, 2015, vol. 1, issue 73, 27-55

Abstract: The developed world’s policy response to the recent financial crisis has produced a growing chorus of criticism of the international financial system by emerging market government officials, related to the currency wars generated by the extraordinary monetary policies introduced by developed country central banks in response to the Great Recession. The proposed solutions to this developments, like increased policy coordination, replacing the dollar with an international reserve currency, and the creation of regional institutions to replace the US-dominated International Monetary Fund, not only have gained little support in the past, they are unlikely to remedy the faults decried by emerging market economies. We suggest that several of the alternatives rejected in the pre-Bretton Woods discussion, like compensation unions, could provide a basis for a more stable financial system suitable to the needs of emerging market economies.

Keywords: emerging economies; international financial architecture; international monetary system; international reserve currency; monetary policy; policy coordination; US dollar (search for similar items in EconPapers)
JEL-codes: E42 E44 E52 F33 G01 (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.bcra.gov.ar/Pdfs/Investigaciones/73_kregel.pdf Spanish version (versión en Español) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bcr:ensayo:v:1:y:2015:i:73:p:27-55

Access Statistics for this article

Ensayos Económicos is currently edited by Germán Feldman

More articles in Ensayos Económicos from Central Bank of Argentina, Economic Research Department Contact information at EDIRC.
Bibliographic data for series maintained by Federico Grillo ().