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IMF blueprint for a global currency yes really
Key Excerpts from Article on Website of Financial Times
Posted: August 9th, 2010
http://ftalphaville.ft.com/blog/2010/08/04/306346/imf-bluepr...
[An] IMF paper [that] first came out in April, 2010, [a]uthored by Reza Moghadam, director of the IMFs strategy, policy and review department, ... discusses how the IMF sees the International Monetary System evolving after the financial crisis. In the eyes of the IMF ... the best way to ensure the stability of the international monetary system (post crisis) is actually by launching a global currency. And that, the IMF says, is largely because [sovereign nations] cannot be trusted to redistribute surplus reserves, or battle their deficits, themselves. The ongoing buildup of such imbalances, meanwhile, only makes the system increasingly vulnerable to shocks. Its also a process thats ultimately unsustainable for all, says the IMF. All in all, the IMF believes there has simply been too much reserve hoarding going on. A global currency makes the most sense, the paper concludes especially since the SDR [Special Drawing Rights] is currently just an accounting tool that draws on the freely usable currencies of member states, not an actual currency itself.
Note: For key news articles on the global financial crisis to which this IMF report is responding, click here.
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