Current Global Imbalances and the Keynes Plan

Lilia Costabile

Working Papers from Political Economy Research Institute, University of Massachusetts at Amherst

Abstract: This paper proposes an interpretation of current global imbalances based upon the nature of the international currency, its main objective being to present a “logical experiment”, illustrating how alternative models of international financial organization may produce opposite results in the global economy. In the current organization, "key currencies" work as international money. Keynes, by contrast, proposed that this role should be assigned to a supra-national, "credit" money. While the world currently lives in what has been defined as a “balance of financial terror”, Keynes tried to achieve a more peaceful type of “international balance”. I argue that some of the technical provisions of the “Keynes Plan” may still – at least in principle- provide useful remedies for international disequilibria, by remedying the asymmetries of the current international monetary system and curbing both inflationary and deflationary pressures on the world economy.

Keywords: Global imbalances; valuation effects; key currencies; Keynes Plan (search for similar items in EconPapers)
JEL-codes: E1 F32 F33 (search for similar items in EconPapers)
Date: 2007
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://per.umass.edu/fileadmin/pdf/working_papers ... rs_151-200/WP156.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to per.umass.edu:443 (No such host is known. )

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:uma:periwp:wp156

Access Statistics for this paper

More papers in Working Papers from Political Economy Research Institute, University of Massachusetts at Amherst Contact information at EDIRC.
Bibliographic data for series maintained by Judy Fogg ( this e-mail address is bad, please contact ).