A new IMF reserve currency without the problems of the substitution account – The creation of Special Transaction Rights

"With discontent at the current state of the international monetary system still lingering, is there an alternative to the decades-old discussions about gold, Bretton Woods Systems, and Special Drawing Rights? This column claims there is. It proposes a new IMF reserve currency with the creation of Special Transaction Rights.

In the wake of the global financial crisis, the discontent with the current international monetary system lingers on (see for example Vines 2010). But is there an alternative given the decades-old discussions about gold, Bretton Woods Systems, Bancor, and Special Drawing Rights (SDRs)? Yes, there is.
In this column I outline a proposal for the creation of Special Transaction Rights. Special Transaction Rights (STRs) would circumvent the problems of the substitution account associated with SDRs (and the Triffin dilemma), and they would also foster reserve diversification and the build up of local bond markets..."

at http://www.voxeu.org/index.php?q=node/6366