Re: Re: Re: Re: Re: Re: Re: Re: beginning of the end?

[Peter Dorman <dormanp@xxxxxxxxxxxxx>]

This is true -- I really don't think we know anything that these folks
don't (although we of course put different values on it and maybe weight
the probabilities differently).  Still, I'm not sure they would have the
resources to stem a sudden run on the dollar under the current
circumstances (which are very different from those during the Carter
administration).  They surely have a contingency plan, however.

Peter

Doug Henwood wrote:

> Well, what's that, chopped liver? It's a bit of an understatement to
> describe the consultations of CBers as "informal" - they G10 have
> monthly meetings at the BIS, and no doubt all kinds of crisis
> strategies worked out. And while the IMF does exist to protect
> creditors, it has acted as a focal point at least since the debt
> crisis broke out in 1982 for CBers and finance ministers to
> coordinate rescue strategies. They can't prevent global recessions,
> but they have repeatedly kept financial panics from turning into
> generalized meltdowns (and in shifting the costs of adjustment onto
> the poor and weak).
>
> Doug