Reshaping the International Monetary Architecture : Lessons from Keynes’ Plan

Reshaping the International Monetary Architecture : Lessons from Keynes’ Plan

As the global economy undergoes profound changes, it is becoming apparent that the so-called "Revived Bretton Woods System" has increased the overall vulnerability of the global financial architecture. Therefore, it is worth revisiting th...

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Bibliographic Details
Main Author:	Piffaretti, Nadia F.
Format:	Policy Research Working Paper
Language:	English
Published:	2012
Subjects:	ACCUMULATION OF RESERVES ASSETS BALANCE OF PAYMENTS BALANCE-SHEET BANK MARKET BANK MARKETS BANK RUN BANKING INSTITUTION BANKING PANICS BANKING STRUCTURE BANKING SYSTEM BANKING SYSTEMS BILATERAL TRADE CAPITAL INFLOWS CENTRAL BANK CENTRAL BANKING CENTRAL BANKS CLEARING HOUSES CLEARINGHOUSE COMMERCIAL BANKS COMMODITIES CONFIDENCE-BUILDING COORDINATION FAILURE COORDINATION FAILURES CREDIT GROWTH CREDIT MARKETS CREDITOR CREDITORS CREDITS CURRENT ACCOUNT CURRENT ACCOUNT DEFICIT CURRENT ACCOUNT POSITION CURRENT ACCOUNT SURPLUS DEBT DEBTOR DEBTOR COUNTRIES DEBTOR COUNTRY DEBTORS DEBTS DEFICITS DEPOSIT DEPOSIT INSURANCE DEPOSITS DEPRESSION DEVELOPING COUNTRIES DEVELOPMENT CORPORATION DOMESTIC CREDIT DOMESTIC DEMAND DOMESTIC FINANCIAL SECTOR DOMESTIC SAVING ECONOMIC ACTIVITY ECONOMIC CRISIS ECONOMIC IMBALANCES ECONOMIC SYSTEM EMERGING MARKETS EMPLOYMENT EQUALITY EQUILIBRIUM EURO ZONE EXCHANGE RATE EXCHANGE RATE FLEXIBILITY EXCHANGE RATE FLUCTUATION EXPLOITATION EXTERNAL DEFICIT EXTERNAL POSITION EXTERNAL TRADE FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL ARCHITECTURE FINANCIAL CRISIS FINANCIAL FRAGILITY FINANCIAL GLOBALIZATION FINANCIAL INTERMEDIATION FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL VULNERABILITIES FINANCIAL VULNERABILITY FINANCING FACILITY FISCAL DEFICIT FIXED EXCHANGE RATES FLOW OF FUNDS FREE ASSETS GLOBAL ECONOMIC LANDSCAPE GLOBAL ECONOMY GLOBAL FINANCIAL SYSTEM GLOBAL IMBALANCES GLOBALIZATION GOLD GOVERNMENT BONDS HOLDING HOLDINGS HOME COUNTRY HOUSING IMBALANCE IMBALANCES IMPORT IMPORTS INDEBTED HOUSEHOLDS INFLOWS OF CAPITAL INSTRUMENT INTERBANK MARKETS INTEREST RATE INTERNAL FINANCING INTERNAL SAVING INTERNATIONAL BANK INTERNATIONAL BANKING INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL FLOWS INTERNATIONAL CLEARING INTERNATIONAL COOPERATION INTERNATIONAL CURRENCY INTERNATIONAL DEBATE INTERNATIONAL ECONOMICS INTERNATIONAL FINANCIAL ARCHITECTURE INTERNATIONAL FINANCIAL CRISIS INTERNATIONAL FINANCIAL SYSTEM INTERNATIONAL INVESTMENT INTERNATIONAL INVESTMENTS INTERNATIONAL MONETARY SYSTEM INTERNATIONAL MONETARY SYSTEMS INTERNATIONAL RESERVE INTERNATIONAL RESERVES INTERNATIONAL SETTLEMENT INTERNATIONAL TRADE INTERNATIONAL TRANSACTIONS ISSUANCE KEY CURRENCIES KEY CURRENCY LEGAL TENDER LENDER LENDER OF LAST RESORT LEVERAGE LEVY LIABILITY LIABILITY SIDE LIQUIDITY LIQUIDITY ASSISTANCE LIQUIDITY MANAGEMENT LONG-TERM INTEREST LONG-TERM INTEREST RATES LOW INTEREST RATES MARKET POWER MONETARY FUND MONETARY POLICY MONETARY REFORM NATIONAL BONDS NATIONAL CURRENCIES NATURAL RESOURCES OVERDRAFT OVERDRAFT FACILITIES OVERDRAFTS PAYMENTS ARRANGEMENTS PAYMENTS IMBALANCES PENALTIES PRIVATE FINANCIAL INTERMEDIARIES PROPERTY MARKETS PUBLIC POLICY PURCHASING POWER REGIONALISM RESERVE ACCUMULATION RESERVE BANK OF INDIA RESERVE CURRENCY RESERVE FUND RETURN SAFETY NET SAVINGS SECURITIES SETTLEMENT SHAREHOLDERS SOLVENCY STOCK MARKETS STOCKS SURPLUS SURPLUS COUNTRIES SURPLUS COUNTRY SURPLUSES SWAP SYSTEMIC RISK T-BILLS TRADE FLOWS TRADE SHOCKS TRADE SURPLUS TREASURIES TREASURY TREASURY BONDS UNION VENTURE CAPITALIST VOLUME OF TRADE WORLD ECONOMY
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090831143615 http://hdl.handle.net/10986/4228

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Summary:	As the global economy undergoes profound changes, it is becoming apparent that the so-called "Revived Bretton Woods System" has increased the overall vulnerability of the global financial architecture. Therefore, it is worth revisiting the origins of the Bretton Woods conference, and pointing out the relevance for today s framework of Keynes original 1942 plan for an International Clearing Union. This note explores the main characteristics of Keynes' original plan, by revisiting his original writings between 1940 and 1944, and outlining its relevance to the current debate on the international financial architecture. The note suggests that reforms of the international financial architecture should include anchoring the international monetary system on sounder institutional ground.