The non-system that characterises the world economy since the collapse of the Bretton Woods Agreement is the object of much criticism in terms of exchange rate volatility; abrupt reversal of private capital flows; persistent and ‘upstream’ external imbalances (net capital flows moving from emerging to rich countries); asymmetry in the adjustment mechanisms between borrowing and lending countries; asymmetry in the adjustment mechanisms between the United States, whose currency lies at the centre of the current arrangement, and the rest of the world; and excessive accumulation of foreign reserves by emerging countries. Moreover, some consider this ‘system’ to be an aggravating factor—or even a trigger—of the financial imbalances at the root of the recent financial crisis
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