Abstract

Zhou Xiaochuan, governor of the People's Bank of China has catalysed the world's attention with the article we have published. In the governor's opinion the outbreak of the crisis and its spillover to the entire world reflect the inherent vulnerabilities and systemic risks in the existing international monetary system. The reform of the latter would be beneficial for everybody. Zhou Xiaochuan proposes the creation of a stable international reserve currency, disconnected from individual nations, such as a reform of the SDR (Special Drawing Rights) which are used today to regulate the transactions within the IMF (International Monetary Fund).