The future of the international monetary system

Abstract

The work argues that neither stable, nor floating exchange rates can function satisfactorily in the absence of any international control, and restraints, over the fantastic explosion of international liquidity provided to the market, in recent years, by the monetary authorities and the commercial banking system. The author focuses on the inflationary aspects of this phenomenon, neglecting the problems of recession and unemployment. JEL: E42

Keywords

• International monetary system
• floating exchange rates
• control
• liquidity
• commercial banking