Current Monetary Ills
U.S. Banking Crisis and Fed Rescue Effort
An elite group of economists recently descended on the Washington Hotel in the small New Hampshire village of Bretton Woods to attend a conference on the international monetary system.1 Sponsored by the Federal Reserve Bank of Boston, the meeting celebrated the 40th anniversary of the landmark conference that produced the International Monetary Fund, the World Bank and the Bretton Woods system of fixed exchange rates that was to govern international finance for the next quarter century.
By returning to Bretton Woods, the participants may have hoped to receive some inspiration to help them solve the serious problems facing the international monetary system today. While recovery from the deepest recession since World War II is under way in ...