The fatal flaw: the revived Bretton-woods system, liquidity creation, and commodity-price bubbles
AbstractDooley, Folkerts-Landau and Garber (DFG) argue that the present constellation of global exchange-rate arrangements constitutes a revived Bretton-Woods system. DFG ALSO argue that the revived system will be sustainable, despite its large global imbalances. We argue that, to the extent that the present system constitutes a revived Bretton-Woods system, it is vulnerable to the same set of destabilizing forces - - including asset price bubbles and global financial crises - - that led to the breakdown of the earlier regime.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Bank of Greece in its series Working Papers with number 122.
Date of creation: Jan 2011
Date of revision:
Bretton-Woods system; international liquidity; price bubbles; Markov switching model;
Find related papers by JEL classification:
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models &bull Diffusion Processes
- F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
- N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-05-30 (All new papers)
- NEP-CBA-2011-05-30 (Central Banking)
- NEP-MON-2011-05-30 (Monetary Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Barry Eichengreen & Peter Temin, 2010.
"Fetters of gold and paper,"
Oxford Review of Economic Policy,
Oxford University Press, vol. 26(3), pages 370-384, Autumn.
- Sengupta, Rajeswari & Aizenman, Joshua, 2010.
"Global imbalances: Is Germany the new China? A skeptical view,"
25578, University Library of Munich, Germany.
- Joshua Aizenman & Rajeswari Sengupta, 2011. "Global Imbalances: Is Germany the New China? A Skeptical View," Open Economies Review, Springer, vol. 22(3), pages 387-400, July.
- Aizenman, Joshua & Sengupta, Rajeswari, 2010. "Global Imbalances: Is Germany the new China? A Skeptical View," Santa Cruz Department of Economics, Working Paper Series qt3zx245jn, Department of Economics, UC Santa Cruz.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christina Tsochatzi).
If references are entirely missing, you can add them using this form.