An Institutional Approach to Balancing International Monetary Relations: The Case for a Us-China Settlement Facility

30 Pages Posted: 20 Apr 2016

See all articles by Nadia Piffaretti

Nadia Piffaretti

World Bank

Sergio Rossi

University of Fribourg - Faculty of Economics and Social Science

Date Written: January 1, 2010

Abstract

Management of international monetary relations between China and the United States will be one of the crucial parameters for the stability or instability of the global financial system in the next decade. Although most of the literature suggests rebalancing through either adjustment of relative prices or adjustment of behavior in both countries, this paper explores an institutional approach to rebalancing. Applying the lessons from Keynes'1944 plan for a United States-United Kingdom international clearing union, the paper explores the creation of a bilateral United States-China settlement facility as an institutional contribution to the structural rebalancing of global imbalances.

Keywords: Debt Markets, Currencies and Exchange Rates, Emerging Markets, Economic Theory & Research, Access to Finance

Suggested Citation

Piffaretti, Nadia and Rossi, Sergio, An Institutional Approach to Balancing International Monetary Relations: The Case for a Us-China Settlement Facility (January 1, 2010). World Bank Policy Research Working Paper No. 5188, Available at SSRN: https://ssrn.com/abstract=1543047

Nadia Piffaretti (Contact Author)

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Sergio Rossi

University of Fribourg - Faculty of Economics and Social Science ( email )

Fribourg, CH 1700
Switzerland
+41.26.300.8245 (Phone)
+41.26.300.9678 (Fax)

HOME PAGE: http://www.unifr.ch/mapom

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