Three questions of international monetary reform

 French President Nicolas Sarkozy at the Elysee Palace 24 foreign ambassadors and the media to the speech, said that as of this year France holds the rotating presidency of the Group of Twenty, will focus on promoting international monetary system reform. Post-crisis era, monetary system reform has become a major challenge facing the world. How will this reform in the end, its prospects, we may wish to make three

three questions: What are the prospects

Sarkozy stressed that as the national economy closely linked in the context of globalization, a country is difficult to isolate and resolve the current global economic imbalances, the French claim to strengthen coordination and cooperation between governments. However, this reform Sarkozy acknowledged the complexity and difficulty,

in capital flows, the French proposal to give the IMF greater control rights, development of multilateral rules, not only to allow the free flow of international capital, but also allows countries to severe turbulence in capital flows to intervene.

However, the formation of multi-currency system is not possible Many economists believe that the operation of how the multi-currency system itself, will depend on the multilateral level within the framework of international cooperation. They suggested that the best goal of multilateral cooperation is to coordinate monetary policy rather than the exchange rate itself.

Second question: How to change

Sarkozy said the reform of the international monetary system will be the first international symposium held in China this year by the end of March. France hopes to expand the discussion and debate as soon as possible, took over in Mexico before the rotating presidency of the Group of Twenty formation of a number of constructive programs.

Sarkozy, the Bretton Woods system in 1944 had created the world after World War II played an important role in economic revitalization, but the system after the 1971 collapse of the new system has not been replaced. The current over-reliance on U.S. global economic activity.

French Economy, Finance and Industry Minister Christine Lagarde believes that the world economy have become more diversified, but only a dollar a reserve currency, which led to substantial accumulation of dollar reserves is an increase of the vulnerability of the world economic system. Rapid devaluation in the dollar, the world economy will be directly exposed to the financial crisis risks.

a question: Why change

currencies in emerging economies, the internationalization, the French proposed the one hand, developed economies and emerging economies to make efforts, on the other recommendations of the International Monetary Fund to strengthen the role of special drawing rights. SDR is the IMF in 1969, based on the creation of a basket of currencies as a reserve asset and accounting unit. It is the International Monetary Fund allocated to Member States the right to a use of funds, the Member States in the event of balance of payments deficit, the can use it to the International Monetary Fund in exchange for other Member States designated foreign exchange.

Lagarde said France hopes to expand cooperation and consultation, discussion and debate on the way to the eventual formation of a constructive program to promote international monetary system reform.

Lagarde said France hopes the international monetary system reform to achieve three goals: to better protect the emerging economies and developing countries, financial stability and security; reserve currency, more diversified, reducing the single Currency dependence; international financial and monetary policy more coherent.

professor of economics at the University of Paris, France 米歇尔阿列塔 that national interests and market forces will determine the direction of reform. The Bei Naxi - Carlyle and Pisani - Ferry is stressed that the international monetary system reform is not determined by economic theory, but depends on the consultations and negotiations.

American economist, 2001 Nobel laureate in economics Joseph Stiglitz that the instability of the international monetary system is not good for anyone. Despite the consensus on this issue in a very difficult, but there are still present and discuss the need for reform, or reform never started.

Do panic! The main force is still diving? Stuck with the stock is likely to have saved! March the stock market changes are likely to occur? Tug of war hidden behind the movement of funds !
the French presidential palace released a report that the current international monetary system, there are at least four drawbacks: First, fluctuations in currency exchange rates; Second, accelerated international capital flows, the impact of the financial system in emerging economies and imperfect the least developed countries; third is the

in crisis management, the French hope to strengthen existing tools for the International Monetary Fund, to strengthen existing regional and international crisis management, concerns the interests of least developed countries the financial sector.

Recently, a number of internationally renowned economists, the dollar's status around the specific proposals put forward. Columbia University economics professor, Jeffrey Sachs, Special Adviser to UN Secretary-General advocates the establishment of the dollar, euro and currencies of Asian economies as a pillar of the ternary monetary system. Prospect of French experts with the International Information Center Aniesibei Tennessee - Carlyle and the European leading think tank in Brussels European and Global Economic Research Institute for Pisani - Ferry made a similar recommendation.

in macroeconomic policy, the French claim, signed by the Group of Twenty, In particular, the French recommended that countries establish a common