The Monetary System

Foreword and Introduction

One evening in June 2008 served as the pivotal backdrop for a critical meeting between this work’s authors, Jean-Pascal Tranié and Jean-François Serval. Wrapped in thought, and sitting in the kitchen of Jean-Pascal’s Bourville–Normandie country manor, the authors pondered an uncertain economic future – one that could profoundly impact their lives and the financial future of their respective families. At the centre of their dilemma was the question of how to balance actions based on short-term decision horizons against the uncertainty of impending long-term change in the economic environment. Clearly, this was a central theme in deciding how the head of a family should plan, work out his strategic position and then act to preserve his family’s best financial interests. The same might be expected of a corporate CFO/CEO, financial industry professional, government treasury or central banking official, or any other leader engaged in an analytical, strategic planning, risk mitigation or fiscal decision-making position.

In the course of their discussion, Jean-François and Jean-Pascal concluded that the prevailing make-up of the existing financial world would likely undergo an enduring multi-stage transformation in the months and years to come. Accordingly, the authors felt that it was essential for them to understand and characterize the key distinguishing factors which would help shape a future global financial environment. The authors also recognized ...