International Monetary Reform: A Critical Appraisal of Some Proposals

Abstract

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The Challenges of Reforming the International Monetary System in the Post COVID-19 World

“…Others see a shift towards a multimonetary system as a natural consequence of the United States` economic dominance decline, the Asia`s emergence as the world`s new economic power and the multipolar nature of the global economy, together with the internationalization of the renminbi: Eichengreen (2010); Angeloni et al (2011);Bergsten (2011); Bini Smaghi (2011a); Bini Smaghi (2011b); Eichengreen (2011);Fratzscher & Mehl (2011); Salvatore (2011); Park & Wyplosz (2012); Eichengreen (2013); Chitu et al (2014). Eichengreen (2010Eichengreen ( , 2011 considered that the future belongs to a system with multiple reserve currencies, centered around the US dollar, the euro and the renminbi.…”

“…Salvatore (2011) underlined that the most serious shortcoming of the international monetary system is the large and persistent misalignments among the world`s leading currencies (US dollar, euro and renminbi). Park & Wyplosz (2012) have thought that the future international monetary system will be shaped by a three-polar system consisting of the US, China, and Eurozone. Chitu et al (2014) found that that a shift from a unipolar US dollar-based system to a multipolar one could happen sooner than often believed, by analogy with the period when the US dollar overtook Pound sterling much earlier than commonly supposed.…”