International Monetary Reform: A Critical Appraisal of Some Proposals

23 Pages Posted: 29 Jun 2012

See all articles by Yung Chul Park

Yung Chul Park

Korea University - Department of Economics

Charles Wyplosz

University of Geneva - Graduate Institute of International Studies (HEI); Centre for Economic Policy Research (CEPR)

Date Written: June 29, 2012

Abstract

This paper reviews some of the current debates on the reform of the international monetary system. Despite its deficiencies, the United States (US) dollar will remain the dominant currency and Special Drawing Rights (SDR) cannot serve as either an international medium of exchange or a reserve currency. The International Monetary Fund (IMF) has changed its position to accept capital controls under certain circumstances. Refining control instruments better tuned to present day markets may bring about greater acceptance. The 2008–2009 global financial crisis has dimmed much of the earlier hope for the multilateralized Chiang Mai Initiative. The currency swap arrangements portend a new form of international cooperation. Finally, for the Group of Twenty (G20) to matter, the systemically important countries need to ensure the stability of their financial systems and economies.

Keywords: US dollars, special drawing rights, SRD, capital controls, currency swaps, G20

JEL Classification: F32, F33, F42

Suggested Citation

Park, Yung Chul and Wyplosz, Charles, International Monetary Reform: A Critical Appraisal of Some Proposals (June 29, 2012). ADBI Working Paper No. 364, Available at SSRN: https://ssrn.com/abstract=2096027 or http://dx.doi.org/10.2139/ssrn.2096027

Yung Chul Park (Contact Author)

Korea University - Department of Economics ( email )

Anam-dong, Sungbuk-Ku
Seoul, 136-701
Korea

Charles Wyplosz

University of Geneva - Graduate Institute of International Studies (HEI) ( email )

PO Box 136
Geneva, CH-1211
Switzerland
+41 22 908 5946 (Phone)
+41 22 733 3049 (Fax)

HOME PAGE: http://heiwww.unige.ch/~wyplosz

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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