Monetary systems need to be global during Covid crisis
8 June
The Covid-19 pandemic followed by the widespread protests against racism in the US and UK, have highlighted the suffering faced by marginalised communities and economies across the world.
A monetary system that provides equal access to finance for all economies and not just advanced economies is needed.
Claudia Sahm, a macroeconomist, shared an article on the need for a global monetary system that is based on principles of social justice and sustainability.
The article notes that lessons from past crises may give us clues on achieving such a system.
The pandemic has already impacted developing and emerging economies, with more than $100bn in portfolio funds exiting from these markets.
The monetary autonomy and fiscal capacity that advanced economies have is needed for these emerging markets as well to ensure public good.