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The International Circuit of Key Currencies and the Global Crisis: Is there Scope for Reform?


  • Lilia Costabile


In this Working Paper, PERI Research Associate Lilia Costabile explores the potential causal links running from our international monetary system to global imbalances, and from these to the crisis. She asks whether the global imbalances contribute to the current crisis, whether these imbalances are, in turn, favored by, or rooted in, the current organization of the international monetary system, and whether a Keynesian monetary system reformed might cut some of the causes of global crises at their roots. Answering these with three qualified ‘yeses,’ Costabile considers possible remedies and considers some alternative interpretations of the global crisis.

Suggested Citation

  • Lilia Costabile, 2010. "The International Circuit of Key Currencies and the Global Crisis: Is there Scope for Reform?," Working Papers wp220, Political Economy Research Institute, University of Massachusetts at Amherst.
  • Handle: RePEc:uma:periwp:wp220

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    Cited by:

    1. Philip B. Whyman, 2015. "Keynes and the International Clearing Union: A Possible Model for Eurozone Reform?," Journal of Common Market Studies, Wiley Blackwell, vol. 53(2), pages 399-415, March.
    2. Lilia Costabile, 2011. "International capital movements, speculation, and the 'conservation of saving' principle. A 'Harcourtian' interpretation of global imbalances and the global crisis," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 8(1), pages 201-217.

    More about this item


    Key currencies; Keynes Plan; Global imbalances; Global crisis; International monetary system;

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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