Redesigning the International Monetary System. Intellectual Influences and the Return of the Special Drawing Rights: An Open Issue

Abstract

The paper suggests to explore the theoretical and cultural influences on the re-forms made to the International Monetary System since the 1960s, when Triffin's Dilemma "was apparent for all to see", as Volcker suggested. Schmelzer argues that "when Milton Friedman published his article calling for flexible exchange rates in 1953, less than 5 percent of economists around the world shared his view," while in the late 1960s, "about 90 percent of economists did, and they were joined by powerful figures within the government and banking community". Such con-sensus contributed to strengthening the influence of neoliberal theories not only in the scientific environment of economists, but also and especially in the terrain of the directions taken internationally by political and financial institutions. It is therefore high time to ascertain through an empirical and chronological investigation whether there is any correlation between neoliberal paradigms and the International Monetary Fund's restrictive policy choices regarding the allocations of special drawing rights (the basket currency that was supposed to provide for global liquidity needs), and whether their supporters followed any specific and shared view.