Adjust Global Economic Imbalance and Reform the International Monetary System

Since the eruption of the current financial crisis, the U.S. government has taken unprecedented steps to contain it. These steps included a dramatic lowering of benchmark interest rates, direct injection of liquidity, tax exemption, economic stimulus programs, financial stabilization programs, and troubled assets relief program. The European Union, Britain, Japan, and emerging economies have all adopted large scale relief and stimulus programs. It must be pointed out, however, that 2008 financial crisis was triggered by both global economic imbalance and the accumulated inherent conflicts within the international monetary system. Measures taken by these countries were mostly a response to the crisis. As long as the systemic causes of such imbalance remain, a new crisis cannot be avoided…