A thorough debate on this issue can be very beneficial if a “New Architecture” or a “New Bretton Woods” does not imply throwing the baby out with the bath water but does mean reforming the existing architecture. Since the general principles of the current system are more or less correct. But they have to be applied coherently. And they have to be generally adopted.
High margins in product markets and upward wage pressure in labour markets have resulted in uncompetitive domestic costs of production in a number of sectors. This erodes external competitiveness and as a consequence excludes part of the population from formal economic activity. It also ends up constraining a country’s ability to diversify exports.