Calls for a .22New Bretton Woods.22 International monetary systems

g-20 leaders @ summit on financial markets , world economy.

leading financial journalist martin wolf has reported financial crises since 1971 have been preceded large capital inflows affected regions. while ever since seventies there have been numerous calls global justice movement revamped international system tackle problem of unfettered capital flows, not until late 2008 idea began receive substantial support leading politicians. on september 26, 2008, french president nicolas sarkozy, president of european union, said, must rethink financial system scratch, @ bretton woods.

on october 13, 2008, british prime minister gordon brown said world leaders must meet agree new economic system:

however, brown s approach quite different original bretton woods system, emphasising continuation of globalization , free trade opposed return fixed exchange rates. there tensions between brown , sarkozy, argued anglo-saxon model of unrestrained markets had failed. european leaders united in calling bretton woods ii summit redesign world s financial architecture. president bush agreeable calls, , resulting meeting 2008 g-20 washington summit. international agreement achieved common adoption of keynesian fiscal stimulus, area , china emerge world s leading actors. yet there no substantial progress towards reforming international financial system, , nor there @ 2009 meeting of world economic forum @ davos

despite lack of results leaders continued campaign bretton woods ii. italian economics minister giulio tremonti said italy use 2009 g7 chairmanship push new bretton woods. had been critical of u.s. s response global financial crisis of 2008, , had suggested dollar may superseded base currency of bretton woods system.

choike, portal organisation representing southern hemisphere ngos, called establishment of international permanent , binding mechanisms of control on capital flows , of march 2009 had achieved on 550 signatories civil society organisations.

march 2009 saw gordon brown continuing advocate reform , granting of extended powers international financial institutions imf @ april g20 summit in london, , said have president obama s support . during march 2009, in speech entitled reform international monetary system, zhou xiaochuan, governor of people s bank of china came out in favour of keynes s idea of centrally managed global reserve currency. dr zhou argued unfortunate part of reason bretton woods system breaking down failure adopt keynes s bancor. dr zhou said national currencies unsuitable use global reserve currencies result of triffin dilemma – difficulty faced reserve currency issuers in trying simultaneously achieve domestic monetary policy goals , meet other countries demand reserve currency. dr zhou proposed gradual move towards increased use of imf special drawing rights (sdrs) centrally managed global reserve currency proposal attracted international attention. in november 2009 article published in foreign affairs magazine, economist c. fred bergsten argued dr zhou s suggestion or similar change international monetary system in united states best interests rest of world s.

leaders meeting in april @ 2009 g-20 london summit agreed allow $250 billion of sdrs created imf, distributed imf members according each countries voting rights. in aftermath of summit, gordon brown declared washington consensus on . however, in book published during september 2009, professor robert skidelsky, international expert on keynesianism, argued still whether new international monetary system emerging.

on jan 27, in opening address 2010 world economic forum in davos, president sarkozy repeated call new bretton woods, , met wild applause sizeable proportion of audience.

in december 2011, bank of england published paper arguing reform, saying current international monetary system has performed poorly compared bretton woods system.

in august 2012 in international herald tribune op-ed, harvard university professor , director of committee on capital markets regulation hal s. scott called global response euro-zone crisis. wrote 2 failures address european problems around german power had led world wars in 20th century , current crisis beyond capacity of europe, germany again @ center, solve on own. accepting leadership transitions underway in both china , america, scott called on concerned—with japan included china , america—to begin organizing global restructuring through international monetary fund possibly bretton woods ii conference part of process. marketwatch commentator darrell delamaide endorsed scott s idea concluded unfortunately it’s not happen . added first example of failure of europe address breakup of yugoslavia without outside assistance reason endorsement. found u.s. presidential , treasury department leadership , imf leadership dramatically lacking in capacity mount initiative such scott proposed.