Tag Archives: International Monetary System
Now for the next leg of the “financial crisis”
In effect, this is the money trap in operation – again. Central banks are in a quandary. Unless they return to “normal” levels of interest rates quite soon, the current model of capitalism, which depends on market-determined long-term rates, cannot function. If they do, however, raise interest rates any time soon, with debt leverage still…
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Failure to grasp the implications of global finance
It could go either way – towards “sauve qui peut” nationalism, withdrawal from international cooperation, a turning away from globalisation; or towards a remaking of the international system and regulatory apparatus in an effort to harness the benefits of globalisation for citizens. It could depend on chance events. The downing of a…
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The importance of getting money right
The experience people have of the world, their life chances, what they learn, how they live, where they live, indeed their entire social and personal lives are shaped by monetary relationships, the monetary economy and thus to the world monetary system to an extent completely unprecedented in history. This means getting money wrong will have…
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Globalisation – a poisoned chalice
Against such a backdrop, financial globalisation appears to be a weak force. Yet it exists. It exists in many senses. Nations may raise capital controls – though surprisingly few actually have done. But there are ways round them. People’s desire to connect to the major centres of finance where the opportunities and investment chances…
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What major monetary and banking reforms are needed?
The global financial crisis should be seen as a symptom of the lack of fit between three pieces of the jigsaw of modern finance – national or regional monies, innovative financial markets and a globalized financial system. It provided both an encouragement and a warning – an encouragement to search for alternatives…
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Geoffrey Ingham on Money
As the debate about the future of finance has yet to yield consensus on the way forward for policy, so more radical solutions are being openly discussed and advocated. This has stimulated a spreading debate on the very nature of money and banking. Geoffrey Ingham, a Life Fellow of Christ’s College, Cambridge, has brought the…
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Geoffrey Ingham and “The Money Trap”
Two key aspects or functions of money: 1. As a convenient medium of exchange – can be anything; but that’s not enough, as exchange rates between multiple media of exchange would be variable and result in anarchy 2. As a unit of account – this is primary, as Keynes taught – and explains why…
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2. For and against reform
What are the forces favouring reform – and those obstructing it? Natural development: There is a natural tendency for a dominant currency to emerge as the de facto global currency. The US dollar has served that purpose and inertia keeps it in the leading place. But It is in the interests of the US…
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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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