TY  - JOUR
AU  - Dooley,Michael P.
AU  - Folkerts-Landau,David
AU  - Garber,Peter
TI  - An Essay on the Revived Bretton Woods System
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 9971
PY  - 2003
Y2  - September 2003
UR  - http://www.nber.org/papers/w9971
L1  - http://www.nber.org/papers/w9971.pdf
N1  - Author contact info:
Michael P. Dooley
Department of Economics
Engineering II
University of California, Santa Cruz
Santa Cruz, CA 95064
Tel: 831/459 3662
Fax: 831/459-5077
E-Mail: MPD@UCSC.EDU

David Folkerts-Landau
Deutsche Bank
Deutsche Bank AG London
1 Great Winchester Street
London EC2 2EQ
United Kingdom
E-Mail: david.folkerts-landau@db.com

Peter M. Garber
Deutsche Bank
60 Wall Street
New York, NY 10005
Tel: 212/250-5466
Fax: 212/250-2628
E-Mail: peter.garber@db.com
AB  - The economic emergence of a fixed exchange rate periphery in Asia has reestablished the United States as the center country in the Bretton Woods international monetary system. We 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. The success of this strategy in fostering economic growth allows the periphery to graduate to the center. Financial liberalization, in turn, requires floating exchange rates among the center countries. But there is a line of countries waiting to follow the Europe of the 1950s/60s and Asia today sufficient to keep the system intact for the foreseeable future.
ER  -