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Time for a great reset of the financial system

A 30-year debt supercycle that has fuelled inequality illustrates the need for a new regime.

Chris Watling MARCH 18 2021

The writer is founder and chief executive of Longview Economics On average international monetary systems last about 35 to 40 years before the tensions they create becomes too great and a new system is required. Prior to the first world war, major economies existed on a hard gold standard. Intra-wars, most economies returned to a “semi-hard” gold standard. At the end of the second world war, a new international system was designed — the Bretton Woods order — with the dollar tied to gold, and other key currencies tied to the dollar. When that broke down at the start of the 1970s, the world moved on to a fiat system where the dollar was not backed by a commodity, and was therefore not anchored. This system has now reached the end of its usefulness….

read on Financial Times

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