• In what sense – if at all – does the international economic system need a stabiliser? • And if it needs one, how can a currency help to meet such a need? Let me begin with the second question: as a general principle, currencies cannot solve structural problems relating to the global real economy.
And as far as the first question is concerned, it must be said that, while the world economic setting is difficult at the moment, there is certainly no cause to talk of a fundamental instability. In recent weeks the financial markets have at least calmed down a little. The world financial crisis which many people predicted looks unlikely to occur at the moment.