CIGI Papers, August, 2012
While the Bretton Woods system of fixed exchange rates ended almost 40 years ago, remarkably, policy makers continue to be fascinated by the policy strategy that underpinned its arrangements. This paper considers the relevance of the Bretton Woods system, exploring the challenges that must be met in attempting to reform the present international monetary system and euro area policies.
This paper, co-published with the Institute for New Economic Thinking (INET), expands on a number of the ideas raised during the discussion at a CIGI-INET conference held in Waterloo, Canada, that brought together experts on sovereign debt crises. Set against the deteriorating situation in Europe, the conference reopened a question that has largely lain dormant for the past decade: is the overall approach to resolving sovereign debt crises adequate for addressing the challenges ahead?