International Monetary Reform

Robert Mundell

“For thousands of years countries have anchored their currencies to one of the precious metals or to another currency. But in the quarter century since the international monetary system broke down, countries have been on their own, a phenomenon that has no historical precedent in the cooperative game known as the international monetary system.”

“My main concern today is with a permanent improvement in the international monetary system. There is no financial architecture today, and the problem of reform is to create it.”

“An international monetary system in the strict sense of the world does not presently exist. Every country has it own system. Most people do not understand how unusual the system is.”

“The present international monetary system neither manages the interdependence of currencies nor stabilizes prices. Instead of relying on the equilibrium produced by automaticity, the superpower has to resort to “bashing” its trading partners which it treats as enemies” Robert Mundell