No alternative for the current economic system


The global financial system is based on efficiency, not fairness, and it is unlikely that any major changes would produce anything better than what the world already has.


First, it is important to identify the main complaints against the global financial system. Here is a short list: In recent years, the capital and derivative markets have suffered from “bubbles” that, when they explode, can have a catastrophic effect on the real sector; developed economies live mired in debt paid for by developing countries; economic imbalances keep growing, while consumption is skewed in favor of the “golden billion”; and finally, certain countries “rule” the world economy thanks to their ability to issue reserve currencies accepted by the rest of the world. Many economists in developing countries, Russia included, call this an abomination, but is it really true?


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