Sunday, April 10, 2011

Stiglitz Calls for New Global Reserve Currency to Prevent Trade Imbalances

Stiglitz Calls for New Global Reserve Currency to Prevent Trade Imbalances - Bloomberg

The world economy needs a new global reserve currency to help prevent trade imbalances that are reflected in the national debt of the U.S., said Nobel-prize winning economist Joseph Stiglitz.

A “global system” is needed to replace the dollar as a reserve currency and help avoid a weakening of U.S. credit quality, said Stiglitz, a professor at Columbia University in New York. The dollar fell to an almost 15-month low against the euro last week, and the U.S. trade deficitwidened more than forecast in January to the highest level in seven months.

No comments:

Post a Comment