Needed: A New Financial Architecture

Nations live by their polite fictions as much as individuals do, but the current international financial crisis requires a brutal honesty that so far has been lacking. A deflationary spiral, triggered by powerful monetary forces, is threatening to send the world into a severe economic recession. Federal Reserve Board Chairman Alan Greenspan's modest move to cut interest rates is a step toward restoring liquidity to the global economy. But a more fundamental restructuring of the architecture of international finance is needed.

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