« | Home | »

China Calls for New Global Currency

By Michael Cebon | March 26, 2009

It’s a big day when one of the world’s major powers calls for a fundemental reform of the global economy.  Britain’s Gordon Brown as been issuing vague calls for global financial reform, but no real concrete proposals.

Now China has taken the lead, calling for a new global currency which seems to closely resemble the Bancor – JM Keynes’ 1940s proposal for a global reserve currency to solve large global economic credit & debt imbalances.

Chinese central bank governor Zhou Xiaochuan released an essay on Monday calling for a similar system:

“A super-sovereign reserve currency managed by a global institution could be used to both create and control global liquidity.  This will significantly reduce the risks of a future crisis and enhance crisis management capability.”

It is of course an excellent idea – if only the US had agreed to Keynes’ proposal in 1944 in the first place!

Topics: Global Economics, IMF & World Bank | Comments Off

Comments are closed.