AbstractThe following sections are included:IntroductionInterest Differentials, Carry Trades, and Worldwide InflationCarry Trades and International Monetary ReformA New International Monetary Agreement?The Supply Constraint on Bank CreditA Concluding Note on Stagflation in the United...

Before the 1997-98 crisis, the East Asian economies - except for Japan - informally pegged their currencies to the dollar. These soft pegs made them vulnerable to a depreciating yen, thereby aggravating the crisis. To limit future misalignments, the IMF wants East Asian currencies to float...