Bretton Woods III?
Trade imbalances are beginning to narrow and the current crisis has a role in it
|
A
few years back, before this crisis erupted, several economists were concerned about the sustainability of the large global imbalances fueled by the so-called Bretton Woods II system. These economists recognized, in the tendency of export-led economies to manage their exchange-rate systems, the origin of large trade and current account surpluses that, via large foreign reserve accumulation, were financing the mirror image of those surpluses, namely the large U.S. trade and current account deficits. Click here to read more |
This article appeared in Forbes India Magazine of 05 June, 2009
Next Article in Column
Like this article? Subscribe to Forbes India
Just give us your mobile number and we will get in touch with you
You might also want to read...
Post Your Comment
“ There are no comments on this article yet.
Why don't you post one? ”
