Low-Income Countries and an SDR-Based International Monetary System

Open Economies Review, Springer, Vol. 23 (1), pp. 129-150, 2012

Posted: 24 Jan 2014

See all articles by Pietro Alessandrini

Pietro Alessandrini

Università Politecnica delle Marche - Faculty of Economics

Andrea Filippo Presbitero

Università Politecnica delle Marche - Department of Economics; Centre for Macroeconomics & Finance Research (CeMaFiR)

Date Written: February 1, 2012

Abstract

The global financial crisis, the weakening role of the dollar and the increasing international importance of China are calling for a reform of the international monetary system in the direction of greater multilateralism. To this end, we advance a proposal based on a greater role of the Special Drawing Rights (SDRs) and focus on the potential benefits that these could bring to Low-Income Countries (LICs). SDRs would be created exogenously - with a disproportionate allocation to LICs - but also endogenously, through a substitution account and an overdraft facility. Finally, the paper discusses the superiority of this proposal in the context of the current foreign assistance framework.

Keywords: International monetary system, low-income countries, SDR, Key-currencies, reserves

JEL Classification: 011, 019, F55, F35, F33

Suggested Citation

Alessandrini, Pietro and Presbitero, Andrea Filippo, Low-Income Countries and an SDR-Based International Monetary System (February 1, 2012). Open Economies Review, Springer, Vol. 23 (1), pp. 129-150, 2012. Available at SSRN: https://ssrn.com/abstract=2384057

Pietro Alessandrini (Contact Author)

Università Politecnica delle Marche - Faculty of Economics ( email )

Piazzale Martelli, 8
60121 Ancona
Italy

Andrea Filippo Presbitero

Università Politecnica delle Marche - Department of Economics ( email )

Piazzale Martelli, 8
Ancona, AN 60121
Italy
+39 0712207074 (Phone)

HOME PAGE: http://sites.google.com/site/presbitero/

Centre for Macroeconomics & Finance Research (CeMaFiR) ( email )

Piazza Mirabello, 2
Milan, 20100
Italy

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