Prospects for New World Monetary System and Implications for Korea

Prospects for New World Monetary System and Implications for Korea

- Speaker: John Williamson, Senior Fellow, Institute for International Economics

- Date : September 6, 1994.

"Present international monetary arrangements suffer from two principal problems. The first is that floating exchange rates did not live up to the promises that had been made by the literature of the 1960s, which seemed to promise that they would provide a painless mechanism for resolving balance of payments problems and ridding the world of international monetary crises... The second major weakness of the international monetary system - or non-system as some of us would call it - since the breakdown of the Bretton Woods monetary system in 1971 is that it does not put enough pressure on the major countries to discipline and coordinate their macroeconomic policies...”