Thursday, August 25, 2011

Nobel Support for Sarkozy

From Robert Mundell:

The Sarkozy Proposals for reform of the international monetary system have addressed three problems: the instability of raw material prices, the instability of major exchange rates and the need for improved governance of the system. This critique is correct in my view and could be addressed if the dollar-euro rate were stabilized within limits with monetary coordination between the Fed and the ECB. The stabilization could be achieved with each country supporting the other countries currency at its lower bound. China could join the group to make it a triad, the DEY, which could be designated for a renewable period of ten years as the anchor for a global currency in which all IMF members are included.
Hmm. Sarkozy Proposals, in capital letters, no less. I guess I'll have to read the paper, still under embargo.

No comments: