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The Provision of Global Liquidity: The Global Reserve System

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  • José Antonio Ocampo

Abstract

This paper analyses three major problems of the current international monetary system: the asymmetric-adjustment problem, dependence on the monetary policy of the main reserve-issuing country, and the large demand for self-insurance by developing countries. It then proposes two reform routes: transforming it into a fully-fledged multicurrency reserve system or placing at the centre the only truly global reserve asset, the special drawing rights (SDRs). Mixing the two routes may be the only way forward.

Suggested Citation

  • José Antonio Ocampo, 2014. "The Provision of Global Liquidity: The Global Reserve System," WIDER Working Paper Series wp-2014-141, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2014-141
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    File URL: https://www.wider.unu.edu/sites/default/files/wp2014-141.pdf
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    References listed on IDEAS

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    Cited by:

    1. Azar R. Hasanli, 2020. "Global Liquidity Challenges of the International Monetary System," Proceedings of the 17th International RAIS Conference, June 1-2, 2020 032ah, Research Association for Interdisciplinary Studies.

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