Paper gold
A proposal for a new system from a World Bank economist
By Buttonwood
JUSTIN Yifu Lin was the chief economist of the World Bank from 2008 to 2012, the first appointee to that post from the developing world, and thus approaches issues with a fresh pair of eyes. So it is intriguing to see, in his new book Against the Consensus: Reflections on the Great Recession, his suggestion for a new monetary system. He writes that
Under the current system, reserve currency countries have privileged, nearly unrestrained access to low-cost financing for expansionary policies. A reformed international monetary system that eliminates this privilege would be a big step in the right direction.
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