Piffaretti, Nadia F.Rossi, Sergio2014-08-292014-08-292010-01https://hdl.handle.net/10986/19859Management of international monetary relations between China and the United States will be one of the crucial parameters for the stability or instability of the global financial system in the next decade. Although most of the literature suggests rebalancing through either adjustment of relative prices or adjustment of behavior in both countries, this paper explores an institutional approach to rebalancing. Applying the lessons from Keynes' 1944 plan for a United States-United Kingdom international clearing union, the paper explores the creation of a bilateral United States-China settlement facility as an institutional contribution to the structural rebalancing of global imbalances.en-USCC BY 3.0 IGOACCUMULATION OF RESERVESADVANCED COUNTRIESARBITRAGEBANK ACCOUNTSBANK DEPOSITSBANK PAYMENTSBENCHMARKBILATERAL TRADEBONDSBORROWINGCAPITAL LOSSCENTRAL BANKCENTRAL BANKSCIRCULAR FLOWCOMPARATIVE ADVANTAGECONSUMERSCONSUMPTION EXPENDITURESCONSUMPTION GOODSCORPORATE PROFITSCORPORATE SAVINGSCREDIBILITYCREDIT LINESCREDITORCREDITSCURRENCYCURRENCY REGIMECURRENCY UNIONCURRENT ACCOUNTCURRENT ACCOUNT BALANCECURRENT ACCOUNT DEFICITCURRENT ACCOUNT DEFICITSCURRENT ACCOUNT IMBALANCECURRENT ACCOUNT IMBALANCESCURRENT ACCOUNT SURPLUSDEBTDEBT INSTRUMENTDEBT INSTRUMENTSDEBTORDEBTOR COUNTRIESDEBTOR COUNTRYDEBTSDEFICITSDEPOSITORYDEPOSITORY INSTITUTIONSDEPOSITSDEPRECIATIONDEPRESSIONDERIVATIVEDERIVATIVE INSTRUMENTDEVELOPING COUNTRIESDEVELOPMENT BANKDEVELOPMENT ECONOMICSDEVELOPMENT POLICIESDOLLAR EXCHANGE RATEDOMESTIC DEMANDDOMESTIC ECONOMYDOMESTIC FINANCIAL MARKETDOMESTIC INTEREST RATESEARNINGSECONOMIC ACTIVITYECONOMIC CRISISECONOMIC GROWTHECONOMIC IMBALANCEECONOMIC SYSTEMSEMERGING MARKETSEQUILIBRIUMEXCESS CAPACITYEXCHANGE MARKETEXCHANGE MARKETSEXCHANGE RATEEXCHANGE RATE POLICYEXCHANGE RATESEXCHANGE-RATEEXPORTERSEXPORTSEXTERNAL DEBTEXTERNAL DEFICITEXTERNAL DEFICITSEXTERNAL FINANCINGEXTERNAL POSITIONSFINANCESFINANCIAL ARCHITECTUREFINANCIAL ASSETSFINANCIAL CRISISFINANCIAL FRAGILITYFINANCIAL INTERMEDIATIONFINANCIAL MARKETSFINANCIAL RELATIONSHIPFINANCIAL SECTORFINANCIAL STABILITYFINANCIAL SYSTEMFISCAL DEFICITSFOREIGN INVESTMENTFOREIGN TRADEFOREIGN TRANSACTIONSGDPGLOBAL ECONOMYGLOBAL FINANCIAL SYSTEMGLOBAL IMBALANCESGLOBAL TRADEHOLDINGSHOUSEHOLD SAVINGHOUSEHOLDSIMBALANCEIMPORTSINCOMEINCREASING RETURNSINSTRUMENTINSURANCEINTERNATIONAL BANKINTERNATIONAL CLEARING SYSTEMINTERNATIONAL COOPERATIONINTERNATIONAL CURRENCYINTERNATIONAL FINANCIAL ARCHITECTUREINTERNATIONAL FINANCIAL MARKETSINTERNATIONAL MONETARY SYSTEMINTERNATIONAL RESERVEINTERNATIONAL RESERVESINTERNATIONAL SETTLEMENTINTERNATIONAL SETTLEMENTSINTERNATIONAL TRADEINTERNATIONAL TRANSACTIONSINVESTMENT GOODSISSUANCEKEY CURRENCIESLENDERLENDER OF LAST RESORTLIQUID ASSETLIQUIDITYLOCAL CURRENCYLOW INTEREST RATESMACROECONOMICSMARKET FORCESMARKET SHARESMARKET TRANSACTIONSMISALIGNMENTMONETARY AUTHORITIESMONETARY ECONOMICSMONETARY FUNDMONETARY INSTABILITYMONETARY INSTITUTIONMONETARY REFORMMULTILATERAL TRADENATIONAL CURRENCIESNATIONAL ECONOMIESOIL EXPORTERSOIL PRICESOIL-EXPORTING COUNTRIESOPEN ECONOMIESOUTPUTOUTSTANDING BALANCESPAYMENT FACILITYPAYMENT ORDERSPAYMENT SYSTEMSPAYMENT-VERSUS-PAYMENTPOLICY RESPONSEPRIVATE PARTIESPRODUCT MARKETSPRODUCTIVE INVESTMENTPRODUCTIVITY INCREASESPUBLIC SPENDINGQUOTASRATES OF INTERESTRELATIVE PRICESREPAYMENTSRESERVERESERVE ACCUMULATIONRESERVE BANKRESERVE CURRENCIESRESERVE CURRENCYRESERVE FUNDRESERVESRETURNSSALES REVENUESSETTLEMENTSETTLEMENT FACILITYSETTLEMENT PROCEDURESSETTLEMENT SYSTEMSETTLEMENT SYSTEMSSLOWDOWNSOCIAL PROTECTIONSOVEREIGN BONDSSTRUCTURAL REFORMSTRUCTURAL REFORMSSUPPLY SIDESURPLUS COUNTRIESSURPLUS COUNTRYSURPLUSESTIME HORIZONTOTAL OUTPUTTRADE ACCOUNTSTRADE DEFICITTRADE DEFICITSTRADE RELATIONTRADE RELATIONSTRADE SURPLUSTRADE TRANSACTIONSTRADINGTRADING PARTNERTREASURYTREASURY BILLSVALUE ADDEDWEALTHWORLD ECONOMYWORLD TRADE10.1596/1813-9450-5188