Sunday, July 10, 2016

Will The IMF Also Be "Printing Money"?
Project Syndicate essay highlights the IMF's money - the Special Drawing Rights or SDR for short - which could be established as the leading global reserve currency .. "Establishing the SDR as the leading global reserve currency would have far-reaching benefits. It would allow all countries – not just major economic powers – to enjoy 'seigniorage,' or the profits brought by money creation. Moreover, as the IMF economist Jacques Polak suggested long ago, the IMF could finance its programs by creating SDRs, eliminating the cumbersome negotiations required to secure credits or raise member quotas. .. Beyond the push to use SDRs more actively in IMF programs, governments could issue SDR-denominated bonds. Moreover, private banks could increase their use of this monetary unit, just as some European banks used the so-called European Currency Unit, helping to pave the way for the euro."
LINK HERE to the essay

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