Monday, September 28, 2009

World Bank President: U.S. shouldn't take Dollar's status for granted

The President of the World Bank, Robert Zoellick, is asserting that “The United States would be mistaken to take for granted the dollar’s place as the world’s predominant reserve currency." This is according to excerpts of a speech which Zoellick is slated to deliver today to the Paul H. Nitze School of Advanced International Studies at Johns Hopkins University. Zoellick also called for greater international cooperation on economic issues, particularly through a "peer-review" process. Zoellick also criticized central banks and their response to the economic crisis. Zoellick argued that central banks "“argued that damage to the real economy of jobs production, savings and consumption could be contained, once bubbles burst, through aggressive raising of interest rates. They turned out to be wrong.”[1]

Robert Zoellick served as U.S. Trade Represenative and Deputy Secretary of State under the George W. Bush administration. President Bush appointed him to succeed Paul Wolfowitz as President of the World Bank on July 1st, 2007. [2]


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