Reserves of US dollars held by developing countries rose from $1 trillion to $6 trillion between 2001 and 2011, partly because these countries perceived risk in the dysfunctional global financial system. However, high levels of foreign reserves pose serious dangers. Robert Pringle, chairman and founder of Central Banking Publications, contends that surplus savings did not cause the 2008 financial crisis. He blames the excessive elasticity of credit, along with risk-taking bankers and lax monetary policies. Pringle advocates establishing a global monetary standard, anchored to the real economy, to address these issues. getAbstract recommends this thought-provoking – though at times meandering – treatise to economists, financial professionals, policy makers and anyone interested in how money works.
About the Author
Robert Pringle, the chairman and founder of Central Banking Publications, is a financial commentator, economics editor, entrepreneur, and economic policy consultant.