Sarkozy looks to limit exchange rate swings

(AP Photo/Lionel Bonaventure; Pool)

Addressing a diplomat's conference in Paris, President Nicolas Sarkozy said that he was not seeking a return to fixed exchange rates but that G20 countries needed to find ways to limit excessive exchange rate swings and the economic imbalances they create.

In late 2008, as the credit crisis with painfully unfolding Sarkozy called for a return to Bretton Woods II. He didn't get any traction then and I'm sure that Americans and the Brits have no interest now. They will wait until their backs are completely against the wall. Besides, the best way to achieve this would be to go back to some sort of a gold standard and what politician will sign up for that?


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