A New Bretton Woods?

The Bretton Woods sisters, the International Bank for Reconstruction and Development (henceforth the World Bank) and the International Monetary Fund (IMF), were set up in 1944. The original purpose of the former was to help post-Second World War reconstruction; the purpose of the latter was to help revive global trade while averting the 'beggar-thy-neighbor' exchange rate policies that characterized the interwar years. Over the years, the World Bank has refocused on helping poor countries grow while the IMF broadly attempts to foster country policies that ensure macroeconomic stability and limit adverse spillovers to the rest of the world. While these roles still remain, their nature has changed somewhat. In particular, given the development of financial markets around the world, the primary role of these institutions has moved to shaping, guiding, supplementing, and stabilizing the flow of private finance rather than substituting fully for it. This paper focuses on the new ways multilateral institutions may have to perform old tasks, as well as the ways they could perform new tasks such as slowing climate change. Critical to their transformation will be the attitudes of the countries that play the largest role in their governance, as well as reform of the governance process itself.

Bibliographic Details

Main Author:	Rajan, Raghuram G.
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2009
Subjects:	AGGREGATE DEMAND, BANK LENDING, BORROWER, BORROWING, BROKERS, BUDGET DEFICITS, CAPITAL FLOWS, CAPITAL INFLOWS, CASH FLOWS, CLAIMANT, CLIMATE, CLIMATE CHANGE, COLLATERAL, CREDIBILITY, CREDITORS, CURRENT ACCOUNT, CURRENT ACCOUNT DEFICITS, CURRENT ACCOUNT SURPLUS, DEBT CRISIS, DEMONSTRATION EFFECTS, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DISBURSEMENT, DISTRIBUTION OF WEALTH, DUE DILIGENCE, DYNAMICS OF GROWTH, ECONOMIC ADVICE, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC INTEGRATION, EMERGING MARKET, EMERGING MARKETS, ENVIRONMENTAL BENEFITS, ENVIRONMENTAL DEGRADATION, EXCHANGE RATE, EXPOSURE, EXTERNAL DEBT, FACE VALUE, FEASIBILITY, FEDERAL RESERVE, FINANCE CORPORATION, FINANCIAL CRISIS, FINANCIAL DIFFICULTY, FINANCIAL INSTITUTIONS, FINANCIAL MARKETS, FINANCIAL REGULATION, FINANCIAL SECTOR, FINANCIAL SECTOR REGULATION, FINANCIAL STABILITY, FINANCIAL SYSTEMS, FISCAL POLICIES, FOREIGN DIRECT INVESTMENT, GLOBAL TRADE, GLOBALIZATION, GOVERNMENT GUARANTEE, GOVERNMENT SUPPORT, INCOME, INDUSTRIAL COUNTRIES, INDUSTRIAL COUNTRY, INFLATION, INSURANCE, INTEREST RATES, INTERNATIONAL BANK, INTERNATIONAL DEVELOPMENT, INTERNATIONAL FINANCE, JUDICIAL PROCESSES, LENDERS, LOAN, MACROECONOMIC POLICY, MACROECONOMIC STABILITY, MACROECONOMICS, MARKET BORROWERS, MARKET FAILURES, MONETARY FUND, MONETARY INCENTIVES, MONETARY POLICY, MORAL SUASION, MULTILATERAL FINANCIAL INSTITUTIONS, MULTILATERAL LENDER, NATURAL RESOURCES, PEER PRESSURE, PENALTIES, POLICY ADVICE, POLICY DESIGN, POLICY MAKERS, PRIVATE CAPITAL, PRIVATE CAPITAL FLOWS, PRIVATE FINANCE, PRIVATE FINANCING, PRUDENTIAL SUPERVISION, PUBLIC FINANCE, RAPID ECONOMIC GROWTH, REGULATORS, REGULATORY POLICIES, REPAYMENT, RESERVES, RETURNS, SAFETY NETS, SAVINGS, SAVINGS BEHAVIOR, SECURITIES, SHAREHOLDERS, SOCIAL INVESTMENTS, SPILLOVER EFFECTS, SUBSIDIARY, TAX, TRANSITION ECONOMIES, WITHDRAWAL,
Online Access:	http://documents.worldbank.org/curated/en/692531468177837839/A-new-Bretton-Woods https://hdl.handle.net/10986/27999
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