Discussants:
Dr. Eli M. Remolona, Bank for International Settlements
Dep. Gov. Diwa C. Guinigundo, Bangko Sentral ng Pilipinas
The global economy goes through systemic crises. Problems of insufficient global aggregate demand arising from the asymmetric adjustment of deficit and surplus countries and constraints on the policy space for such adjustment, as well as inadequate provision of global liquidity, are recurring themes in these crises. The resolution of these problems necessitates reform of the international monetary system. An alternative to the US dollar as the main global reserve currency and a system that is reflective of the distribution of economic power in the world needs to be found.