Beyond Bretton Woods: When It Comes to Money, We Need a Common Discipline
What was Bretton Woods? A fixed exchange rate system? Yes. A gold exchange standard? Yes. More importantly, though, the agreement struck in 1944 was a macro-economic cooperative framework to promote international stability. The great merit of Bretton Woods was to subject member countries to a common discipline. Countries could not, under that regime, choose to overspend, to expand their borrowing beyond reason. Indeed, devaluations which were the result of such lax policies were under the...
Published:10/6/2021 2:05:49 PM