Bretton Woods Fallacy.pdf

BrettonWoodsHypothesis.pdf
Preview of Bretton Woods Fallacy
🔗 Source: thomaspalley.com
📊 Size: 105 KB
👤 Author: Raul Zahir De Leon
⬇️ Downloads: 167

Summary

The current international financial system is compared to the Bretton Woods system, with the US as the center and East Asia, particularly China, as the periphery, pursuing export-led growth and running huge trade surpluses with the US. However, this analogy is misplaced due to significant microeconomic differences, including the purpose of the systems, exchange rate alignments, and the role of multinational corporations. The current system is unsustainable and prone to a crash, with the US trade deficits driven by export-led growth and under-valued exchange rates, rather than full employment and growing wages. A global system of managed exchange rates is suggested as a replacement.

Description

The current international financial system is compared to the Bretton Woods system, with the US as the center and East Asia, particularly China, as the...

Technical Information

  • File Format: PDF
  • File Size: 105 KB
  • Pages: 21
  • Language: EN
  • Author: Raul Zahir De Leon
  • Total Downloads: 167
  • Last Updated: 1 week ago

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