UN calls for sweeping new “Bretton Woods” system
October 30, 2008
UNITED NATIONSâ€”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.