Former IMF Deputy Director Mohamed El-Erian has published a piece with Project Syndicate which all but confirms the thesis which we have been discussing here on Philosophy of Metrics for years. The call for a broader use of the SDR is not the surprising part. What is surprising is El-Erian’s suggestion that the growing anti-globalization political movements and trade protectionism should be the call to implement a “stronger multilateral core for the world economy” which would “reduce the risk of damaging fragmentation”.
Readers will pick up on the reference to the “new modern nationalism” theme which I have suggested would be used as the springboard to further advance the transformation of the international monetary framework. The use of the word “fragmentation” is also a strong reference to the deeper articles which exist here on POM.
To continue reading please subscribe for full access!