'Asia should pool forces to stand up to US'

[Diane Monaco]

At 06:57 PM 4/23/2002 +0530, you wrote:
>Hindustantimes.com
>
>April 22, 2002
>
>Asia should pool forces to stand up to US, says noted economist
>
>Reuters
>Tokyo , 22-04-2002
>
>Asian economies should pool their huge foreign exchange reserves as a step
>toward a reshaped international monetary system that would be less of a tool
>of US interests, Nobel Prize-winning economist Joseph Stiglitz said on
>Monday.
>
>In a speech to a conference on Asian economic integration, Stiglitz said
>current global monetary arrangements had bred damaging currency volatility
>that required countries to hold substantial assets in reserve in case of
>shocks.

While holding reserves are necessary to pay for imports, debt service, 
defend a currency from speculative attacks, and take care of foreign 
exchange gaps, I think these accumulated reserves have occurred for other 
reasons: mainly to weaken the currencies of these countries by buying large 
amounts of dollars -- but that is beside the point.  I believe Stiglitz 
makes a truly useful suggestion that will benefit Asia and not US interests.

Diane