Tag Archives: Bretton Woods
The real reasons for low real rates
The lowest interest rates in history are failing to spur sustained recovery. Rather, low real rates mirror financial and structural weaknesses Economists cannot agree on the causes of these low real rates. They discuss various hypotheses. Central banks have held policy rates low for years – have these ultra low nominal rates reduced real rates,…
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‘The Money Trap’ now
The book argued that the crisis was the joint product of inflation targeting, irresponsible banking and a weak international monetary system. The book tried to show how these were inter-related: First, inflation targeting, which had been a valuable tool in combatting 1970s inflation, had by the 2000s outlived its usefulness as a guide and discipline for…
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Encounters with Paul Volcker and Jacques de Larosière
This month I have enjoyed wonderful conversations with three elder statesman of international finance and economic policy – Paul Volcker, Jacques de Larosière and Allan Meltzer. They all agreed on one big thing – much of what has gone wrong is down to the absence of a proper international monetary system. This is a…
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A Debate with Allan Meltzer (Part 1)
Professor Allan Meltzer debates international monetary issues and The Money Trap with Robert Pringle On 3/14/2014 12:57 PM, Robert Pringle wrote: Allan, Thinking further about the international monetary system, I now find it difficult to conceive monetary stability being established in one country alone – even if that country is the US. This…
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A Debate with Allan Meltzer (Part II)
On 15 March, 2014, at 22.24 Robert Pringle wrote: WHAT WE AGREE ON It is necessary to agree on many things to have a useful discussion, and it is not surprising we do as my thinking has been much influenced by yours for many years. In a sense I am trying to reconcile my understanding…
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German power needs global fetters
One side-effect of the comic opera that is the Hollande presidency of France is to knock it out, at least temporarily, as a serious counterpart to German strength in Europe. That is a coming challenge for the whole international community, not just for the European Community. Germany is always portrayed as the…
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Beijing sets out its stall
Although the gloss has worn off the market’s initial enthusiastic endorsement of Beijing’s ambitious reform plans unveiled last month, there is little doubt they represent a major further move towards freeing financial markets – and promoting the international role of the RMB. In addition to changes in how companies file for stock market…
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When international monetary reform will be politically attractive
A common criticism of proposals for reform of the international monetary system is that they are not politically possible. Of course, there are other grounds on which they can be and are criticised – especially when they call for a return to stable exchange rates, a howl goes up that this would sacrifice the domestic…
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The “G20/IMF Communique”
Nearly six years after the outbreak of the worst financial crisis in history, prospects for a full economic recovery remain elusive. Unemployment remains at very high levels, and standards of living for many people in developed countries are likely to fall over the first two decades of this century. Meanwhile, emerging markets remain vulnerable…
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The Battle of Bretton Woods
Yesterday I kicked off a round-table discussion organised by the CSFI of Benn Steil’s new book which carries this title. This is what I said. Benn Steil starts this stimulating book by poking fun at those politicians and others who have, in recent years, called for “a new Bretton Woods”. They have all been disillusioned….
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