World Bank Calls For New Gold Standard
- By Jerri Lily
- Published 01/13/2012
- Business
- Unrated
Jerri Lily
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In the upcoming G20 summit in Seoul on the occasion, Zoellick's proposals do not have deep meaning behind
The second round of quantitative easing Federal Reserve (QE2), the Group of Twenty (G20) summit in Seoul, before further escalation of the global exchange rate, and all the arguments eventually the finger of blame directed at the current dollar-based global currency system.
World Bank President Robert Zoellick recently in the British "Financial Times" an appeal for the developed economies should consider re-implementing "improved global gold standard" to provide guidance for the exchange rate changes.
In the upcoming G20 summit in Seoul on the occasion, Zoellick's proposals do not have meaning. The idea of a new international monetary system to replace the existing serious deficiencies in the dollar standard, to avoid the competitive devaluations of the chaotic situation. But this will be a very long period of time the interests of the game: Despite the short term can not be achieved, but it is where the long-term direction.
Hair G20 meeting
Will be held in mid-November G20 meeting will focus on global imbalances, and protectionism cooling topics such as currency war, and these issues on Wednesday The Fed started the second round of quantitative easing monetary policy further after the upgrade.
Zoellick wrote that "second generation Bretton Woods system," the need for a successor. The so-called "second generation Bretton Woods system" refers to the Bretton Woods fixed exchange rate system since 1971 has been implemented since the disintegration of the floating exchange rate system.
Zoellick called for a new system that "may need to include the U.S. dollar, euro, yen, pound sterling, and internationalization,
and then open the capital account of the RMB." He added: "The system should also be considered as the gold market on inflation, deflation and the monetary value of expected future global reference point."
Germany, Brazil and South Africa officials have made clear the behavior of the United States to protest junk currency, because the falling dollar will make prices go up, and make the investment behavior in developing markets have become difficult to control.
Nature of the problem: serious deficiencies Dollar Standard
Zoellick's authors lay bare the nature of these arguments - U.S.-based international monetary system be reformed.
U.S. dollar since the end of World War II international monetary system as standard currency's role, in this sense, the United States is to provide a public good.
Long-term depreciation of the dollar is a kind of escape. This will result in the currency war, and other commodity prices will rise, causing global inflation. Whether war or global monetary inflation, will cause the world economic stagnation.
From paper based instead of the gold standard, the international balance of payments imbalance is the norm, and the U.S., but now claims to be a balance of national conflicts, and to foreign producers and reserves holders pay for these resources in the country's trap. From the Federal Reserve rounds of quantitative easing, the U.S. did not correct the present system has serious structural defects in the will, but also as a platform for the output of domestic conflicts.
In this context, as the World Bank, Robert Zoellick suggest this is very easy to understand. Structure of global governance has become increasingly important, most important of which is the most urgent part of the international monetary system. If we allow the United States that 'naughty' down, then the world would be terrible.
The second round of quantitative easing Federal Reserve (QE2), the Group of Twenty (G20) summit in Seoul, before further escalation of the global exchange rate, and all the arguments eventually the finger of blame directed at the current dollar-based global currency system.
World Bank President Robert Zoellick recently in the British "Financial Times" an appeal for the developed economies should consider re-implementing "improved global gold standard" to provide guidance for the exchange rate changes.
In the upcoming G20 summit in Seoul on the occasion, Zoellick's proposals do not have meaning. The idea of a new international monetary system to replace the existing serious deficiencies in the dollar standard, to avoid the competitive devaluations of the chaotic situation. But this will be a very long period of time the interests of the game: Despite the short term can not be achieved, but it is where the long-term direction.
Hair G20 meeting
Will be held in mid-November G20 meeting will focus on global imbalances, and protectionism cooling topics such as currency war, and these issues on Wednesday The Fed started the second round of quantitative easing monetary policy further after the upgrade.
Zoellick wrote that "second generation Bretton Woods system," the need for a successor. The so-called "second generation Bretton Woods system" refers to the Bretton Woods fixed exchange rate system since 1971 has been implemented since the disintegration of the floating exchange rate system.
Zoellick called for a new system that "may need to include the U.S. dollar, euro, yen, pound sterling, and internationalization,
Germany, Brazil and South Africa officials have made clear the behavior of the United States to protest junk currency, because the falling dollar will make prices go up, and make the investment behavior in developing markets have become difficult to control.
Nature of the problem: serious deficiencies Dollar Standard
Zoellick's authors lay bare the nature of these arguments - U.S.-based international monetary system be reformed.
U.S. dollar since the end of World War II international monetary system as standard currency's role, in this sense, the United States is to provide a public good.
Long-term depreciation of the dollar is a kind of escape. This will result in the currency war, and other commodity prices will rise, causing global inflation. Whether war or global monetary inflation, will cause the world economic stagnation.
From paper based instead of the gold standard, the international balance of payments imbalance is the norm, and the U.S., but now claims to be a balance of national conflicts, and to foreign producers and reserves holders pay for these resources in the country's trap. From the Federal Reserve rounds of quantitative easing, the U.S. did not correct the present system has serious structural defects in the will, but also as a platform for the output of domestic conflicts.
In this context, as the World Bank, Robert Zoellick suggest this is very easy to understand. Structure of global governance has become increasingly important, most important of which is the most urgent part of the international monetary system. If we allow the United States that 'naughty' down, then the world would be terrible.
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