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Reform of the International Monetary System

Reform of the International Monetary System
The Palais Royal Initiative

First Edition
Edited by:
  • Jack T. Boorman - Advisor to the Director of IMF's Independent Evaluation Office, Washington DC, USA
  • Andre Icard - Banque de France

September 2011 | 388 pages | SAGE India
September 2008 saw the United States financial system at the edge of collapse, with the tightly integrated global financial system following close behind. But that was only a symptom of the problems that generated the ensuing crisis. The more fundamental cause lay in some of the practices that had developed in many of the major financial institutions. The emergence of perverse incentives helped create a credit bubble that eventually burst. But even these failures of the financial system, by themselves, would have been unlikely to cause a crisis of the scale that the world confronted. The crisis was fostered by the massive expansion of liquidity that developed in the global financial system—and its inevitable impact on interest rates and the search for yield that those low rates created. That, in turn, was a result of failures within the International Monetary System.

The book will help anyone who is seeking to understand how the International Monetary System works, the sources of its weaknesses and vulnerabilities, and the proposals for the change. The Report of the Palais Royal Initiative and the other papers in this book will help stimulate a global discussion of the reforms to the International Monetary System that are so urgently needed.

Harinder S Kohli and Jack T Boorman
1: The Report of the Palais Royal Initiative-Reform of the International Monetary System: A Cooperative Approach for the 21st Century

Michel Camdessus and Alexandre Lamfalussy
Palais Royal Initiative-Reform of the International Monetary System: A Cooperative Approach for the 21st Century February 8, 2011

Discussions of the Palais Royal Initiative

Reconstructing a World Monetary Order

Michel Camdessus, Alexandre Lamfalussy, and Tommaso Padoa-Schioppa
Toward a New International Monetary System

Michel Camdessus
Reforming Exchange Rate Relationships

Tommaso Padoa-Schioppa
The Ghost of Bancor: The Economic Crisis and Global Monetary Disorder

Tommaso Padoa-Schioppa
Toward an Orderly Supply of Reserve Currencies

Michel Camdessus and André Icard
Strengthening IMF Surveillance

Jack T Boorman
The Debate on the International Monetary System

Isabelle Mateos y Lago, Rupa Duttagupta, and Rishi Goyal
Strengthening IMF Surveillance: A Comprehensive Proposal

Edwin M Truman
Some Thoughts on Surveillance for Global Stability

Y Venugopal Reddy
Thoughts on Reforming the International Monetary System and Enhancing the Role of the SDR

Xiaolian Hu
Enhancing the Role of the SDR as a Reserve Asset

André Icard
Making the SDR a More Attractive Reserve Asset: The Development of Private SDR Markets

Pietro Catte
An SDR Based Reserve System

Peter B Kenen
Global Liquidity: Where it Comes From and Why it Matters

Pietro Catte and Corrinne Ho
The IMF as International Lender of Last Resort

Edwin M Truman

Contribution by Michel Aglietta

Contribution by Peter Bofinger

What International Monetary System for a Fast-Changing World Economy?

Agnès Bénassy-Quéré and Jean Pisani-Ferry
Contribution by Joseph Yam

Contribution by Andrew Sheng

Contribution by John Williamson

Contribution by Peter B Kenen

Trade Imbalances: Causes, Consequences, and Policy Measures

Hans-Werner Sinn, Teresa Buchen, and Timo Wollmershäuser


A useful reading for economic policy-makers, central bankers, regulators and researchers...technically brilliant papers on a single theme, together with the report and its recommendations...indeed a novel concept.

ASCI Journal of Management

Jack T. Boorman

Jack T. Boorman was the Director of the Policy Development and Review Department of the International Monetary Fund for more than a decade. In the latter years of his career with the Fund, he was Counsellor and Special Advisor to the Managing Director. He held several other positions in the Fund, including in the European and Asian Departments, and as Resident Representative in Indonesia. Before his career in the IMF, Mr. Boorman taught at the University of Southern California, from which he received his Ph.D. in Economics, and at the University of Maryland. He also served as a Financial Economist in the Research Department of The Federal... More About Author

Andre Icard

André Icard is Honorary General Manager of the Banque de France and the former Deputy General Manager of the Bank for International Settlements. From 1964 to 1995, André Icard was at the Banque de France, where he was Member of the Inspection of the Bank and of the Banking Commission (1968–74), Manager of the Balance of Payments Division (1977–83), Manager of the Foreign Exchange Division (1984–86) and Manager of the Financial Markets division (1986–90) where he took part in the modernisation of the Paris money and financial markets. From 1990 to 1995, he was the General Manager of the Economic Department of the French central bank. From... More About Author

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ISBN: 9788132105596