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The International Monetary System’s Structural Flaws, a Process of Economic Development, and the Job Guarantee

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  • Devin T. Rafferty

Abstract

The international monetary system currently suffers from three structural flaws that disproportionately affect developing nations: an asymmetric balance of payments adjustment mechanism, the Triffin Paradox, and an inequity bias against developing nations. Thus, as currently constituted, this global monetary framework is biased against the development prospects of developing nations and is antagonistic to their development efforts. However, the author’s contention is that developing countries can use a Job Guarantee (JG) to address these shortcomings because it offers five significant international macroeconomic benefits that involve presenting developing nations with an enhanced degree of domestic policy options, altering how global liquidity is provisioned and the need for acquiring it, and inciting a direct challenge to the neoliberal conventional wisdom of global political economy. As a result, developing nations can use a JG as a cornerstone in any development strategy that seeks to sustainably mobilize underemployed labor resources and increase productive capacity and utilization rates while remaining free of the structural constraints imposed by the international monetary system. JEL Classification: B52, O11, F40

Suggested Citation

  • Devin T. Rafferty, 2023. "The International Monetary System’s Structural Flaws, a Process of Economic Development, and the Job Guarantee," Review of Radical Political Economics, Union for Radical Political Economics, vol. 55(4), pages 651-659, December.
    • Handle: RePEc:sae:reorpe:v:55:y:2023:i:4:p:651-659
    DOI: 10.1177/04866134231197449
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    References listed on IDEAS

    as
    1. Jan Kregel, 2009. "Mobilizing Domestic Resources," International Journal of Political Economy, Taylor & Francis Journals, vol. 38(3), pages 39-57.
    2. L. Randall Wray, 1998. "Understanding Modern Money," Books, Edward Elgar Publishing, number 1668.
    3. José Antonio Ocampo, 2017. "Resetting the International Monetary (Non)System," Books, Red Investigadores de Economía, number 2017-11, March.
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    More about this item

    Keywords

    job guarantee; Modern Money Theory; economic development; international monetary system;
    All these keywords.

    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General

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