Sun Lijian, Shanghai Daily | May 7, 2012
The current global monetary system is insufficient to deal with today's challenges. ++ Since the collapse of Bretton Woods, there has been a US dollar-led system, which in turns allows for less than optimal US financial policies. ++ Western plans like quantitative easing (QE) have produced excess liquidity. ++ Such schemes produce inflationary pressures and could reduce the national wealth of East Asian nations holding dollar and euro assets. ++ There is an urgent need for reforming the global monetary system based on consensus.