Föhrenbergkreis Finanzwirtschaft

Unkonventionelle Lösungen für eine zukunftsfähige Gesellschaft

Posts Tagged ‘Bretton Woods’

There Is No Alternative to Multilateralism

Posted by hkarner - 22. September 2019

Date: 21-09-2019
Source: Project Syndicate

Josh Frydenberg is Treasurer of Australia and Deputy Leader of the Liberal Party.
Heng Swee Keat is Deputy Prime Minister and Finance Minister of Singapore.
Sri Mulyani Indrawati is Finance Minister of Indonesia and Chair of the World Bank Group’s Development Committee.
Bill Morneau is Finance Minister of Canada.

After the 2008 financial crisis, G20 leaders took decisive and coordinated action to boost market and consumer confidence, and then implemented coordinated reforms to ensure future financial stability. Today, with the multilateral system under severe strain, a similar cooperative push is urgently needed.

CANBERRA – Since the creation of the Bretton Woods system 75 years ago, countries have been coming together in pursuit of global public goods, giving rise to both the international trading system and a global financial safety net.

It is to this multilateral approach that we owe our shared success. The free flow of trade, investment, and ideas has helped lift more people out of poverty than ever before. And the world’s growing middle classes are now broadening the opportunities for further exchange of goods, services, and innovation. Den Rest des Beitrags lesen »

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What comes after Bretton Woods II?

Posted by hkarner - 15. August 2019

   Date: 14-08-2019
Source: The Economist: Free exchange

The world’s monetary system is breaking down

“THERE IS no longer any need for the United States to compete with one hand tied behind her back,” Richard Nixon, then America’s president, told his countrymen in August 1971. With that speech, he heralded the end of the postwar economic order, suspending the convertibility of the dollar into gold and putting up tariffs on imports. The survival of today’s order, which emerged from the chaos that followed, now looks increasingly in doubt. In other circumstances, its demise might not have been mourned. But with each passing August day, the prospects for a happy shift from one global monetary regime to another look ever grimmer.

The seemingly simple act of trading across borders is complicated by the fact that most countries have their own currencies, which move in idiosyncratic ways. Governments’ efforts to manage these wobbles are constrained by certain trade-offs. Pegging currencies to an external anchor to stabilise their value means either ceding control of domestic economic policy or restricting access to flows of foreign capital. Systems of monetary order, which resolve these trade-offs in one way as opposed to another, work until they do not. The context for America’s economic showdown with China is a system that worked once but no longer does. Den Rest des Beitrags lesen »

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BRETTON WOODS UND DIE G20

Posted by hkarner - 4. Juli 2019

FURCHE-Kolumne 270 Wilfried Stadler,

Dass globale Probleme nur dann lösbar sind, wenn die gewichtigsten Spieler der Weltwirtschaft nach gemeinsamen Regeln suchen, hat die Finanzkrise 2008 höchst unsanft in Erinnerung gerufen. Seit damals treffen deshalb die Spitzen von 19 führenden Wirtschaftsnationen, ergänzt um den Präsidenten der EU-Kommission, regelmäßig zusammen. Sie repräsentieren nicht weniger als 85 Prozent der globalen Wirtschaftsleistung.

US-Präsident Trump nützte den jüngsten G20-Gipfel in Japan zu einer weiteren Demonstration jener Taktik des „divide et impera“, die seinem Narzissmus so entgegenkommt. Bilaterale Treffen mit Xi Jiping, Angela Merkel oder Wladimir Putin sollten wieder einmal alles in den Schatten stellen, was sonst noch am gemeinsamen Konferenztisch besprochen wurde. Der Abstecher nach Nordkorea war die Draufgabe zur Ego-Show.

Ob ihn wohl irgendjemand darauf aufmerksam gemacht hat, dass das Treffen in Osaka mit dem 75. Jahrestag des Abschlusses der Konferenz von Bretton Woods im US-Bundesstaat New Hampshire zusammenfiel – und wie anders die Rolle der Vereinigten Staaten damals war?
Im Sommer 1944 glückte den Vertretern von 44 Ländern nach dreiwöchigen Verhandlungen ein Schlussdokument, in dem die Eckpfeiler der Nachkriegs-Wirtschaftsordnung fixiert wurden. Das Ende des Weltkrieges war damals trotz der erst kurz zuvor geglückten Landung der Alliierten in der Normandie noch nicht endgültig absehbar. Den Vorsitz über die meist bis tief in die Nacht andauernden Gespräche führte John Maynard Keynes, der renommierteste Ökonom seiner Zeit. Den Rest des Beitrags lesen »

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The Next Phase of Finance

Posted by hkarner - 14. März 2018

Bertrand Badré

Bertrand Badré, a former managing director of the World Bank, is CEO and Founder of Blue like an Orange Sustainable Capital and author of Can Finance Save the World? 

Today’s strengthening economic recovery has not overcome the understandable but devastating loss of trust in the financial system that followed the crisis a decade ago. Restoring trust will require reasserting control over the financial sector, to ensure that it is serving the economy, not the other way around.

WASHINGTON, DC – The decade since the global financial crisis has been tumultuous, to say the least. True, no great war has erupted, and we have more or less avoided the mistakes of the Great Depression, which led in the 1930s to greater protectionism, bank failures, severe austerity, and a deflationary environment. But renewed market tensions indicate that these risks have not been eradicated so much as papered over.

In a sense, the story of the 2008 financial crisis begins when the global order was created from the ashes of World War II. Initiatives like the Bretton Woods institutions (the World Bank and the International Monetary Fund), the Marshall Plan, and the European Economic Community supported the reconstruction of significant portions of the world economy. Despite the Cold War (or perhaps because of it), they also re-started the globalization that WWII had brought to a halt. Den Rest des Beitrags lesen »

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Europe’s Bretton Woods Moment

Posted by hkarner - 2. März 2018

Harold James is Professor of History and International Affairs at Princeton University and a senior fellow at the Center for International Governance Innovation. A specialist on German economic history and on globalization, he is a co-author of the new book The Euro and The Battle of Ideas, and the author of The Creation and Destruction of Value: The Globalization Cycle, Krupp: A History of the Legendary German Firm, and Making the European Monetary Union.

Political leaders in France and, soon, Germany will have a chance to deliver the European Union from its malaise, but only by heeding the right lessons from the past. The success of grand bargains between France and Germany in 1963, and between the victors of World War II in 1944-1945, speak to the need for a bold, comprehensive approach.

PRINCETON – After years of paralysis during the debt crisis that began in 2009, the European Union seems to have regained some momentum. In France last year, Emmanuel Macron and his La République En Marche ! won the presidency and a strong parliamentary majority. And in Germany, after much delay, the center-left Social Democrats are currently voting on a new coalition agreement with the center-right Christian Democratic Union and its Bavarian sister party, the Christian Social Union.

The hope now is for renewed Franco-German cooperation and a new Élysée Treaty, updating the historic 1963 agreement negotiated by German Chancellor Konrad Adenauer and French President Charles de Gaulle. A new arrangement might involve more spending at the EU level and overcoming old German taboos against a “transfer union.” Den Rest des Beitrags lesen »

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Addicted to Dollars

Posted by hkarner - 3. März 2017

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An Inheritance of Incompetence

Posted by hkarner - 16. August 2016

By John Mauldin, August 13, 2016mauldin 

– Dean Acheson

“Practical men who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist.”

– John Maynard Keynes

I don’t often agree with Keynes, but he is the most quotable of all major economists. The above sentence was one of his best. He was right about defunct economists. Of course, he was talking about all those other defunct economists who no longer kept up with his new and improved way of thinking about all things economic. Now his quip comes back to haunt his legacy and his followers.

Theories and practices often outlive their usefulness in our fast-changing world. So do institutions, including those chartered at the 1944 Bretton Woods Conference. In today’s letter we are going to look closely at the International Monetary Fund and a scathing report from its own internal auditors. For those of us who have been following the IMF for decades, the report is not all that surprising.

My real purpose here is not to point the finger at the IMF but to point out where its problems are part and parcel of a greater problem in global institutions. During the next global recession we are going to see a continuation of the same approaches to crisis solving that we’ve seen in the past, based on the theories of defunct economists mixed with personal and institutional biases. Their prescription is a witches’ brew that we will be told is good for us but that will in fact ensure that those of us least able to cope will bear the brunt of its impact. Den Rest des Beitrags lesen »

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From Golden Dollar to Petro Dollar to Narco Dollar

Posted by hkarner - 10. Mai 2016

Dank an H.F.
9.05.2016 Author: F. William Engdahl, NEO

3454344The role as world reserve currency is something no financial hegemon in history has willingly surrendered. It took two world wars for the City of London and Bank of England to reluctantly concede hegemony of the Pound Sterling to the Dollar. As Henry Kissinger is said to have remarked decades ago, “If you control the money, you can control the entire world.” Whether or not Kissinger ever said that publicly, he and his patron, David Rockefeller, certainly believed it. Now, with US government debt shooting past $19 trillion and the true state of the American economy and its infrastructure at its worst since the Great Depression, with most Americans living on the brink of financial disaster, the brilliant financial engineers of Wall Street and Washington have once again come up with a scheme to prolong the role of Dollar as King in the world economy.

The recent Panama Papers revelations by a select group of Western mainstream media including the New York Times, BBC and Süddeutsche Zeitung, were notable as a brazen attempt to attack foreign leaders such as Russia’s Vladimir Putin and China’s Xi Jinping for alleged corruption. Notably, the leaked files of the Panama law firm, Mossack Fonseca, so far have failed to leak even one significant name of a US citizen hiding money in offshore accounts of the Panama facilitators. Den Rest des Beitrags lesen »

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Imagining a New Bretton Woods

Posted by hkarner - 5. Mai 2016

Photo of Yanis Varoufakis

Yanis Varoufakis

Yanis Varoufakis, a former finance minister of Greece, is Professor of Economics at the University of Athens.

MAY 4, 2016, Project Syndicate

AUSTIN, TEXAS – The financial meltdown of 2008 prompted calls for a global financial system that curtails trade imbalances, moderates speculative capital flows, and prevents systemic contagion. That, of course, was the goal of the original Bretton Woods system. But such a system today would be both untenable and undesirable. So, what might an alternative look like?

The 1944 Bretton Woods conference featured a clash of two men and their visions: Harry Dexter White, President Franklin Roosevelt’s representative, and John Maynard Keynes, representing a fading British Empire. Unsurprisingly, White’s scheme, founded on the United States’ post-war trade surplus, which it deployed to dollarize Europe and Japan in exchange for their acquiescence to full monetary-policy discretion for the US, prevailed. And the new post-war system provided the foundation for capitalism’s finest hour – until America lost its surplus and White’s arrangement collapsed.

The question asked periodically during much of the last decade is straightforward: Would Keynes’s discarded plan be more appropriate for our post-2008 multipolar world? Den Rest des Beitrags lesen »

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The Fragmentation of Bretton Woods

Posted by hkarner - 16. August 2014

Date: 16-08-2014
Source: Project Syndicate

MOHAMED A. EL-ERIANEl-Erian

Mohamed A. El-Erian, Chief Economic Adviser at Allianz and a member of its International Executive Committee, is Chairman of President Barack Obama’s Global Development Council. He previously served as CEO and co-Chief Investment Officer of PIMCO. He was named one of Foreign Policy’s Top 100 Global Thinkers in 2009, 2010, 2011, and 2012. His book When Markets Collide was the Financial Times/Goldman Sachs Book of the Year and was named a best book of 2008 by The Economist.

LAGUNA BEACH – The world has changed considerably since political leaders from the 44 Allied countries met in 1944 in Bretton Woods, New Hampshire, to create the institutional framework for the post-World War II economic and monetary order. What has not changed in the last 70 years is the need for strong multilateral institutions. Yet national political support for the Bretton Woods institutions – the International Monetary Fund and the World Bank – seems to have reached an all-time low, undermining the global economy’s ability to meet its potential and contributing to geopolitical insecurity.

When the Bretton Woods conference was convened, its participants understood that the IMF and the World Bank were integral to global stability. Indeed, both institutions were designed to discourage individual countries from adopting short-sighted policies that would harm other economies’ performance, incite retaliatory action, and ultimately damage the entire world economy. In other words, they were intended to prevent the kind of beggar-thy-neighbor policies that many major economies adopted during the Great Depression of the 1930s.

Moreover, by encouraging better policy coordination and the pooling of financial resources, the Bretton Woods institutions boosted the effectiveness of international cooperation. And they enhanced stability by offering collective insurance to countries facing temporary hardship or struggling to meet their development-financing needs.

It is difficult to identify more than a small handful of countries that have not benefited in some way from the IMF or the World Bank. Yet countries seem hesitant to contribute to the reform and strengthening of these institutions. In fact, a growing number of systemically important countries have taken measures that are undermining the Fund and the Bank, albeit largely inadvertently. Den Rest des Beitrags lesen »

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