David Folkerts-Landau

TL;DR: The authors argue that the normal evolution of the international monetary system involves the emergence of a periphery for which the development strategy is export-led growth supported by undervalued exchange rates, capital controls and official capital outflows in the form of accumulation of reserve asset claims on the center country.

TL;DR: The authors argue that the normal evolution of the international monetary system involves the emergence of a periphery for which the development strategy is export-led growth supported by undervalued exchange rates, capital controls and official capital outflows in the form of accumulation of reserve asset claims on the center country.

TL;DR: This paper explored the implications of the revived' Bretton Woods system for exchange market intervention and reserve management in periphery countries, and argued that management of the currency composition of international reserves by emerging market governments and central banks is unlikely to alter these conclusions.

TL;DR: This paper explored the implications of the revived' Bretton Woods system for exchange market intervention and reserve management in periphery countries, and argued that management of the currency composition of international reserves by emerging market governments and central banks is unlikely to alter these conclusions.

TL;DR: The authors argue that a chronic US current account deficit is an integral and sustainable feature of a successful international monetary system and that the US deficit supplies international collateral to the periphery, which in turn supports two-way trade in financial assets that liberates capital formation in poor countries from inefficient domestic financial markets.