The Benefits Of International Trade
by John B. Taylor via Policyed.org
International trade allows countries to consume more goods than they can produce on their own. They can do so by specializing in the production of goods for which they have a comparative advantage. This is true even if the country has an absolute advantage on producing all goods more efficiently than the other countries it can trade with.
Some Thoughts On International Monetary Policy Coordination
by Charles I. Plosser via Economics Working Papers
In this short paper, I review previous efforts at international coordination among central banks. In particular, I highlight the ultimate failure of both the gold standard and the Bretton Woods regimes. In both cases, the desire for a fixed rate regime forcing each country to make domestic monetary and fiscal policies subservient to pressures from the external balance.
Remarks At The Panel "Toward A Rules-Based International Monetary System"
by John B. Taylor via Cato Institute
It is a pleasure to be on this panel on moving toward a more rules-based international monetary system. Over the past few years I have been making the case for such a system. In fact I made the case over 30 years ago in Taylor (1985), and the ideas go back over 30 years before that to Milton Friedman (1953). However, the case for such a system is now much stronger because the monetary system drifted away from a rules-based approach in the past dozen years and, as Paul Volcker (2014) reminds us, the absence of a rules-based monetary system “has not been a great success.”
Addicted to Dollars
Carmen Reinhart of Harvard University, describing a study she co-authored in February, reported that the US dollar has retained its dominant position as the global reserve currency despite America's declining share of global output over the past few decades. But she wondered how much longer that would last.
The Risk of a New Economic Non-Order
Mohamed El-Erian worries that failure to reform international governance institutions could lead to their breakdown.
New Russia sanctions: The “free trade” wing of the Republican Party has taken the United States into a trade war that it cannot win, David P Goldman contends. The new sanctions passed by the House and Senate last week force Europe into a de facto alliance with Russia against the United States, and by extension with China as well. It is the dumbest and most self-destructive act of economic self-harm since the United States de-linked the dollar from gold on August 15, 1971, and it will have devastating consequences. READ THE STORY HERE