Bretton Woods II regime

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The Bretton Woods II regime is used by some economists, including Michael Dooley, David Folkerts-Landau and Peter Garber, to convert the non-codified currency system , which included East Asian currencies, including the Chinese renminbi (yuan), to the US dollar after 2001 binds, designated. The designation is based on the Bretton Woods system , in which the exchange rates were contractually fixed.

structure

This system is based on the fact that the USA finances large parts of its current account and budget deficit through Asian capital inflows and thus imports goods from Asia cheaply. In return, the East Asian countries, e.g. B. China, export surpluses and accumulate foreign exchange reserves in US dollars. It is characterized by the following key elements:

  • The US imports large quantities of goods from East Asia and especially from China and Japan.
  • Since neither China nor Japan demand large quantities of US products, this system results in a high US foreign trade deficit.
  • Since both China and Japan keep the exchange rates of the national currencies yuan and yen low in order to ensure the competitiveness of their own product range on the international market, there has been no market-based balance of the flow of goods.

The Bretton Woods II regime is seen as one of the leading causes of the 2007 financial crisis . It is part of the “macroeconomic environment” that formed the “breeding ground” for the crisis.

Again since the massive interest rate cuts by the Fed as a result of this financial crisis and the almost 8 percent devaluation of the dollar in February / March 2008, there has been increasing talk of a collapse of the Bretton Woods II regime.

The special relationship between China and the USA, in which China accumulates foreign currency and thus finances its exports to the USA at the same time, is referred to by Niall Ferguson as " Chimerica ".

"Bretton Woods II" is sometimes also mentioned in the media at the extraordinary world financial summit of more than twenty of the most important industrialized and emerging countries in Washington in November 2008, at which the reform of the international financial system in the wake of the financial crisis from 2007 onwards will be discussed.

See also

literature

  • Michael P. Dooley, David Folkerts-Landau, and Peter Garber, September 2003, An Essay on the Revived Bretton Woods System ; NBER Working Paper No. 9971, PDF
  • Michael P. Dooley, David Folkerts-Landau, Peter M. Garber: Bretton Woods II still defines the international monetary system. National Bureau of Economic Research , February 2009. http://www.nber.org/papers/w14731
  • Robert Brenner , "What is Good for Goldman Sachs is Good for America The Origins of the Present Crisis" (October 2, 2009). Center for Social Theory and Comparative History. Paper 2009-1. [1] page 14f.

Individual evidence

  1. ↑ Wolfgang Münchau : Meltdown in the financial system . Carl Hanser Verlag , Munich 2008, ISBN 978-3-446-41847-9 , pp. 158 ff .
  2. ↑ Wolfgang Münchau : Meltdown in the financial system . Carl Hanser Verlag , Munich 2008, ISBN 978-3-446-41847-9 , pp. 155 ff . ; see. Benedikt Fehr : "Bretton Woods II is dead. Long live Bretton Woods III" . FAZ of May 12, 2009, p. 32.
  3. ↑ Stephanie Schoenwald: “Global imbalances. Are you (partly) responsible for the financial market crisis? ”KfW (Kreditanstalt für Wiederaufbau) Research. MacroScope. No. 29, February 2009. p. 1. On the external imbalances as “macroeconomic breeding ground” for the crisis, see also Deutsche Bundesbank: Financial Stability Report 2009, Frankfurt am Main, November 2009 ( Memento of the original from March 7, 2012 in the Internet Archive ) Info: Der Archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. (PDF). @1@ 2Template: Webachiv / IABot / www.bundesbank.de
  4. ^ The Ascent of Money. A Financial History of the World, "Allen Lane, 2009
  5. ↑ Ansgar Belke, Kerstin Bernoth and Ferdinand Fichtner: The future of the international currency system. DIW weekly report No. 37 + 3, 2011, footnote 7

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