The international financial and monetary system must adapt to the global economy’s upcoming challenges by laying down the foundations for renewed world macroeconomic and financial stability. In this paper we develop several concrete proposals that aim not only to increase the coverage of global liquidity necessary when facing individual and systemic crises but also to reduce demand for foreign reserves.
Farhi, E.; Gourinchas, P.O.; Rey, H. Reforming the international monetary system (IGC Working Paper). International Growth Centre (IGC), London, UK (2011) 54 pp.