We recommend a Bretton Woods system along structural lines. A key component of the case is the substitution of the money transmission mechanism by the credit transmission mechantsm. We suggest that the real exchange rate be the variable of cooperation...
We recommend a Bretton Woods system along structural lines. A key component of the case is the substitution of the money transmission mechanism by the credit transmission mechantsm. We suggest that the real exchange rate be the variable of cooperation between countries that are free to set interest rates to pursue domestic policy objectives.