SUMMARY OF 2 ARTICLES Essay Example | Topics and Well Written Essays - 750 words

SUMMARY OF 2 ARTICLES - Essay Example Examples of situations given are the 2008 economic recession and the European debt crisis of 2010. The article begins by describing the financial crisis that had recently engulfed the global economy and the role played by the Bretton woods institutions in restricting financial activities along with the potential for monetary panic. It additionally states that the breakdown of these institutions brought forth great expansions in the scales, scope along with the speculative nature of monetary activities. The global monetary crisis that took place in the year 2008 is described and related to the complex, uncontrolled and interlinked environment of the financial systems found across the globe. It also describes the sovereign debt crisis happening within the European continent as a continuation of this crisis which according to the author has however been utilized by the monetary markets in attempting to reassert their influence. Reforms that are being initiated and implemented within the international monetary system have also been described by the author in the article. The main arg ument presented by the article is that the concepts behind the world wide monetary architecture have been misconceived among the different economies around the globe. The article stipulates that the system required should use national monetary regulation that is coordinated using international organizations. It describes the role of monetary regulation as constraining the power along with the size of the monetary systems to the appropriate levels. Finally, it suggests that member countries should adopt the reforms put forward by organizations like the International Monetary Fund to place the burdens of making adjustments on a country’s population for the purpose of ensuring that all foreign creditors are paid their dues. It is further suggested that after the international creditors have all been paid up, the