Robert Zoellick, World Bank, Gold Standard, Business News
The departure from the gold standard for world economies is having disastrous effects on managing world currencies, so say the champions for the return of the gold standard. Up until now, these advocates have been on the fringe of the world of economists. But that group may have just went mainstream with the recent statements by World Bank President, Robert Zoellick, who is calling for a return to the gold standard.
Leading economies should consider readopting a modified global gold standard to guide currency movements, said World Bank president Robert Zoellick.
Writing in the Financial Times, Zoellick said a “Bretton Woods II” system of floating currencies is needed to replace the Bretton Woods fixed-exchange rate regime that broke down in the early 1970s.
Zoellick called for a system that “is likely to need to involve the dollar, the euro, the yen, the pound and (yuan) that moves toward internationalization and then an open capital account.”
He added: “The system should also consider employing gold as an international reference point of market expectations about inflation, deflation and future currency values.”