Current Global Imbalances and the Keynes Plan : A Keynesian Approach for Reforming the International Monetary System

This paper proposes a ldquo;logical experimentrdquo;, illustrating how alternative international monetary systems may produce opposite results in the global economy. In the current organisation, ldquo;key currenciesrdquo; work as international money. Keynes, by contrast, proposed that this role should be assigned to a supranational, ldquo;creditrdquo; money. While the world currently lives in an asymmetric regime, which lead to what has been defined as a ldquo;balance of financial terrorrdquo;, Keynes tried to achieve a more peaceful type of ldquo;international balancerdquo;. I argue that the structural reform and the technical provisions proposed by the ldquo;Keynes Planrdquo; may still ndash; at least in principle ndash; provide useful remedies for international disequilibria, by remedying the asymmetries of the current international payments architecture and helping to curb both inflationary and deflationary pressures on the world economy