IDEAS home Printed from https://ideas.repec.org/p/wpa/wuwpma/0108005.html
   My bibliography  Save this paper

The Development and Reform of the Modern International Financial System

Author

Listed:
  • L. Randall Wray

    (The Levy Economics Institute)

Abstract

The international financial system might be said to be in crisis. It requires frequent intervention by central banks and other national and international bodies to reduce fluctuations of currencies. It does not tend to eliminate current account deficits and surpluses; exchange rate fluctuations do not lead to movements toward balanced trade, nor do they appear to follow from flows of international reserves: some countries run persistent surpluses while others run persistent deficits. This paper first examines the functioning of the modern international financial system in order to design a reformed system that will make it to deal with some of the problems that face the international financial system today. The paper advocates reformation of the international financial system today. The paper advocates reformation of the international financial system along the lines of Keynes's famous bancor proposal. Most importantly, the reform would eliminate the current bias toward "austerity" that results from the way in which existing international financial institutions operate.

Suggested Citation

  • L. Randall Wray, 2001. "The Development and Reform of the Modern International Financial System," Macroeconomics 0108005, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpma:0108005
    Note: Type of Document - Adobe Acrobat PDF; prepared on IBM PC; to print on PostScript; pages: 65; figures: included
    as

    Download full text from publisher

    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/mac/papers/0108/0108005.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Paul Davidson, 1992. "International Money and the Real World," Palgrave Macmillan Books, Palgrave Macmillan, edition 0, number 978-0-230-37809-4, December.
    2. Frank Hahn, 1985. "Money and Inflation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262580624, April.
    3. Paul Davidson, 1978. "Money and the Real World," Palgrave Macmillan Books, Palgrave Macmillan, edition 0, number 978-1-349-15865-2, March.
    4. J.A. Kregel, 1992. "Some Considerations on the Causes of Structural Change in Financial Markets," Journal of Economic Issues, Taylor & Francis Journals, vol. 26(3), pages 733-747, September.
    5. J. A. Kregel (ed.), 1989. "Inflation and Income Distribution in Capitalist Crisis," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-08833-1, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. FIGUERA, Stephano, 2002. "La réforme du système monétaire international : une réflexion dans une perspective keynésienne," LATEC - Document de travail - Economie (1991-2003) 2002-01, LATEC, Laboratoire d'Analyse et des Techniques EConomiques, CNRS UMR 5118, Université de Bourgogne.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arena, Richard, 1992. "Une synthèse entre post-keynésiens et néo-ricardiens est-elle encore possible?," L'Actualité Economique, Société Canadienne de Science Economique, vol. 68(4), pages 587-606, décembre.
    2. Paul Davidson, 1991. "Is Probability Theory Relevant for Uncertainty? A Post Keynesian Perspective," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 129-143, Winter.
    3. Sheila C. Dow, 1999. "Post Keynesianism and Critical Realism: What Is the Connection?," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 22(1), pages 15-33, September.
    4. Costas Lapavitsas, 2003. "Money As €˜Universal Equivalent’ And Its Origin In Commodity Exchange," Working Papers 130, Department of Economics, SOAS University of London, UK.
    5. Fernando Carvalho, 1983. "On the Concept of Time in Shacklean and Sraffian Economics," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 6(2), pages 265-280, December.
    6. C. Sardoni & L. Randall Wray, 2007. "Fixed and Flexible Exchange Rates and Currency Sovereignty," Economics Working Paper Archive wp_489, Levy Economics Institute.
    7. Perez Caldentey, Esteban & Ali, Anesa, 2010. "Growth and convergence/divergence in productivity under balance-of-payments constraint," MPRA Paper 20056, University Library of Munich, Germany.
    8. Hyman P. Minsky & Charles J. Whalen, 1996. "Economic Insecurity and the Institutional Prerequisites for Successful Capitalism," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 19(2), pages 155-170, December.
    9. Arslan Razmi & Robert Blecker, 2008. "Developing Country Exports of Manufactures: Moving Up the Ladder to Escape the Fallacy of Composition?," Journal of Development Studies, Taylor & Francis Journals, vol. 44(1), pages 21-48.
    10. Marc Lavoie, 2001. "Endogenous Money in a Coherent Stock-Flow Framework," Macroeconomics 0103007, University Library of Munich, Germany.
    11. Jochen Hartwig, 2014. "Relative Movements of Real Wages and Output," KOF Working papers 14-355, KOF Swiss Economic Institute, ETH Zurich.
    12. Dominick Salvatore, 1998. "International Monetary and Financial Arrangements: Present and Future," Open Economies Review, Springer, vol. 9(1), pages 375-416, January.
    13. Colin Danby, 2000. "LDCs, Institutions, and Money," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 22(3), pages 407-421, March.
    14. León Díaz, John Jairo, 2007. "Keynesianismo, Poskeynesianismo y Nuevokeynesianismo: ¿Tres doctrinas diferentes y una sóla teoría verdadera? [Keynesianism, PostKeynesianism and Newkeynesianism: ¿Three different doctrines just on," MPRA Paper 4600, University Library of Munich, Germany, revised 2007.
    15. Policy Analyst - UNICEF Zimbabwe, 2002. "Evidence on the demand for money function in Uganda," Development and Comp Systems 0210005, University Library of Munich, Germany.
    16. Michalis Nikiforos, 2013. "Uncertainty and Contradiction: An Essay on the Business Cycle," Economics Working Paper Archive wp_770, Levy Economics Institute.
    17. Jochen Hartwig, 2006. "Explaining the aggregate price level with Keynes's principle of effective demand," Review of Social Economy, Taylor & Francis Journals, vol. 64(4), pages 469-492.
    18. Paul M. Mason, 1985. "An Assessment of Tobin's Interpretation of Keynes' Liquidity Preference Theory," The American Economist, Sage Publications, vol. 29(2), pages 49-54, October.
    19. Engelbert Stockhammer & Rafael Wildauer, 2016. "Debt-driven growth? Wealth, distribution and demand in OECD countries," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 40(6), pages 1609-1634.
    20. L. Randall Wray, 2012. "Keynes after 75 Years: Rethinking Money as a Public Monopoly," Chapters, in: Thomas Cate (ed.), Keynes’s General Theory, chapter 15, Edward Elgar Publishing.

    More about this item

    JEL classification:

    • E - Macroeconomics and Monetary Economics

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpma:0108005. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: EconWPA (email available below). General contact details of provider: https://econwpa.ub.uni-muenchen.de .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.