« "This Is Not a Test. This Is Not a Test" - Thomas Friedman | Main | Saïd and done - Inteview of The Economist of Colin Mayer dean of Said Business School »

Thursday, 12 March 2009

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d83451644969e201127950017028a4

Listed below are links to weblogs that reference Paul Danos yesterday on "Great Debate" of Reuters - A middle ground in the banking crisis:

Comments

Viktor O. Ledenyov

The nationalization of banks can provide an illusion of stability in short term perspective only. In long term, the Federal Reserve or Bank of England would not be able to stabilize the situation in finances, when the US and UK economies are not functional. However, the next big problem would be a shift to the new reserve currencies away from the US dollar. The new reserve currencies have to be stable monetary exchange units in the corresponding national economies and have to satisfy the following conditions:
1. The new reserve currency has to appreciate over time;
2. The new reserve currency has to be convertible on the currency exchange markets;
2. The interest rates set by central bank have to depreciate over time;
3. The inflation has to be as low as possible
So, the question to understand is: What are the best candidates for the position of new reserve currency in the World. Of course, the P.R. China currency may be an attractive option.

The comments to this entry are closed.

Editors

Search DeansTalk


  • ARCHIVES from May '05

Categories

Disqus