A brave new international monetary system

This event discussed the paper A Brave New International Monetary System, by Eric Santor and Lawrence Schembri (Download CVX ).

Lawrence Schembri and his co-author argue that the current international monetary system (IMS) is not working and is inherently unstable. They define and make the case for a revised vision for the IMS; one in which systemically important countries (or currency areas) have market-based and convertible floating exchange rates supported by monetary policies that aim to achieve some definition of price stability, such as inflation targeting. In the context of a coherent macroeconomic and financial policy framework, such an IMS is highly desirable for the countries themselves as well as for the global economy and they articulate a transition path to this vision for emerging market economies.

The brief initial presentation was followed by comments from Daniel Gros and then an open discussion chaired by Jean Pisani-Ferry.

Click here  to download the paper A Brave New International Monetary System