CURRENCY WARS AND A GROWING ROLE FOR THE INTERNATIONAL MONETARY FUND
“The role of the SDR has not been put into full play due to limitations on its allocation and the scope of its uses. However, it serves as the light in the tunnel for the reform of the international monetary system.”
—Zhou Xiaochuan, People’s Bank of China Governor, March 2009
The history of the international monetary system over the past 150 years is one of relatively long periods of stability interspersed with periods of dysfunction and punctuated by abrupt changes in the prevailing rules of the game. The periods of stability are the classical gold standard period of 1870–1914, the Bretton Woods gold-backed dollar period of 1944–1971, and the strong ...