UN calls for sweeping new “Bretton Woods” system

Boston.com
October 30, 2008

UNITED NATIONS—Diplomats and economists are pressing for new global financial rules, seeking an update of the World War II-era system created at New Hampshire’s Bretton Woods.

Nobel Prize-winning economist Joseph E. Stiglitz of Columbia University told the U.N. General Assembly that “this is a global crisis and it requires a global response.”

U.N. General Assembly President Miguel d’Escoto Brockmann convened a debate on the global financial meltdown to position the world organization squarely at the center of a possible fix.

Development economist and former U.N. official Sakiko Fukuda-Parr of the New School said that “global solutions are needed.”

At the 1944 Bretton Woods conference of major powers in New Hampshire, the U.S.-led negotiations spawned the two major sister U.N. institutions, the International Monetary Fund and World Bank.

COMMENT: Stiglitz recommended a global reserve currency to stabilize assets “too big to fail” in the era of globalization.

See video: http://www.cnbc.com/id/15840232?video=912963848

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