Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

IMF Must Reflect the End of U.S.-Led Order, Sachs Writes in FT

May 31 (Bloomberg) -- The next head of the International Monetary Fund must be capable of helping to create a new global framework, for the existing U.S.-led order has had its day, Jeffrey Sachs, who heads the Earth Institute at Columbia University, wrote in the Financial Times.

For the past 20 years, the U.S. has been unable to provide monetary stability, financial regulation and fiscal rectitude; if the dollar remains the only key currency, the world will go on suffering the consequences of America’s troubles, as happened during the financial crisis, Sachs said.

The answer is a system based on several regional currencies: the dollar, the euro, the yuan and, perhaps, the Brazilian real and the Indian rupee; that means regional groups such as the eurozone, the Arab world and the main economies of southeast Asia must assume responsibility for monetary policy, financial regulation, tax coordination and enforcement and fiscal policy harmonization, he said.

The IMF would still have plenty to do, for the world is “rife with lawlessness and recklessness, with tax havens and regulation-free zones catering to the avarice of globally mobile capital,” Sachs said.

A new IMF leader should not be “anointed” but selected on the basis of careful vetting, he said.

To contact the reporter on this story: Alan Purkiss in London on apurkiss@bloomberg.net.

To contact the editor responsible for this story: Colin Keatinge at ckeatinge@bloomberg.net.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.