Bretton Woods II
Dooley, Folkerts-Landau and Garber have referred to the monetary system of today as Bretton Woods II. They argue that in the early 2000s (decade), like 40 years earlier, the international system is composed of a core issuing the dominant international currency, and a periphery. The periphery is committed to export-led growth based on the maintenance of an undervalued exchange rate. In the 1960s, the core was the United States and the periphery was Europe and Japan. This old periphery has since graduated, and the new periphery is Asia. The core remains the same, the United States. The argument is that a system of pegged currencies, in which the periphery export capital to the core that provides a financial intermediary role is both stable and desirable, although this notion is controversial.
Read more about this topic: Bretton Woods System
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—Henry David Thoreau (1817–1862)