Although a number of countries, including China and Russia, have suggested replacing the dollar as the world's reserve
UNCTAD report is the first time a major multinational institution
has posited such a suggestion.
In essence, the report calls for a new Bretton Woods-style system of managed
international exchange rates, meaning central banks would be forced to
intervene and either support or push down their currencies depending on how
the rest of the world economy is behaving.
The proposals would also imply that surplus nations such as China and Germany
should stimulate their economies further in order to cut their own
imbalances, rather than, as in the present system, deficit nations such as
the UK and US having to take the main burden of readjustment.
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