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New financial architecture and regional monetary integration in Latin America

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Author Info
Jean-François Ponsot () (LEPII - Laboratoire d'Économie de la Production et de l'Intégration Internationale - CNRS : UMR5252 - Université Pierre Mendès-France - Grenoble II)
Abstract

Reducing transaction costs and the need for international reserves is a primary objective to the establishment of regional payment agreements. Another objective, especially in the case of Latin America where the Ecuadorian promoters of the Bank of the South and the New Architecture are planning the implement of a regional clearing system, is to reduce member countries dependence on the US dollar as an international standard and reserve currency. To help improving the design of such agreements this paper refers to the plan Keynes designed for the Bretton Woods Conference. First, it observes that cases were made against this plan from which useful lessons may still be drawn. Second, it shows that Keynes defined a system for exchanging domestic currencies for each other that can be improved and help design currency unions in accordance with their promoters'objectives.

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Paper provided by HAL in its series Post-Print with number halshs-00390436_v1.

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Date of creation: 14 May 2009
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Publication status: Published - Presented, Colloque international "Économie politique internationale et nouvelles régulations de la mondialisation", Centre de Recherche sur l'Intégration Économique et Financière, Université de Poitiers, 2009, Poitiers, France
Handle: RePEc:hal:journl:halshs-00390436_v1

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Keywords: regional monetary arrangements ; foreign exchange ; currency union ; dollar standard; payment systems; Latin America;

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  1. Claude Gnos & Louis-Philippe Rochon, 2004. "Reforming the international financial and monetary system: from Keynes to Davidson and Stiglitz," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 26(4), pages 613-629, October. [Downloadable!] (restricted)
  2. McKinnon, Ronald I, 1993. "The Rules of the Game: International Money in Historical Perspective," Journal of Economic Literature, American Economic Association, vol. 31(1), pages 1-44, March. [Downloadable!] (restricted)
  3. Davidson, Paul, 1972. "Money and the Real World," Economic Journal, Royal Economic Society, vol. 82(325), pages 101-15, March. [Downloadable!] (restricted)
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This page was last updated on 2009-12-22.


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