World Economy Fared Better With Bretton Woods System, BOE Says
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The global monetary and financial system hasn’t maintained financial stability as well as the Bretton Woods system of fixed currencies and needs to be reformed, according to a Bank of England research paper.
“Against a range of metrics, today’s system has performed poorly, at least relative to the BWS,” economists Oliver Bush, Katie Farrant and Michelle Wright said in the paper published in London today. “The key failure being the system’s inability to maintain financial stability and minimize the incidence of disruptive sudden changes in global capital flows.”