I take to admit three very interesting assumptions.
1. The USA economy has the advantage of the dollar being world money, and it therefore can issue dollars beyond what would normally be a proportionate ratio to its assets.
2. Global finance capitalism is so interpenetrated that leaders of US finance capital can discuss with leaders of German finance capital different ways of managing world money. And clearly if this is said in public, a number of them must have done some sort of feasability studies about a basket of major global currencies in private.
3. There are disadvantages to the USA's low savings ratio. But what can they be?? It seems to me that the citizens of the USA have been able to enjoy billions more dollars worth of goods and services than they would otherwise have before the economy hit the buffers. So in what sense is the low savings ratio bad for the USA?
Chris Burford
London
>>>>>
At 01/12/01 11:43 -0500, you wrote:
>Thanks to Seth Ackerman for finding this.The New York Fed is the most
>equal of all the 12 branch banks.
>
>Doug
>
>----
>
><http://www.newyorkfed.org/pihome/news/speeches/sp971117.html>
>
>A U.S. PERSPECTIVE ON ECONOMIC
>AND MONETARY UNION IN EUROPE
>
>Remarks by
>William J. McDonough
>President
>Federal Reserve Bank of New York
>before the
>Association of German Mortgage Banks
>Frankfurt, Germany
>November 17, 1997
>
>[...]
>
>But should a different international monetary system ultimately emerge in
>which other currencies, such as the euro, play an increasingly important
>role alongside the dollar, there would be benefits for the United States as
>well. Such a development would, for example, impose greater market-led
>discipline on the United States and, in the process, help us address our
>chronic low-savings problem.
>