"The Bretton Woods system, established in the ruins of a world left devastated by World War II, was a set of international monetary arrangements that aimed to promote economic stability and growth by linking national currencies to the U.S. dollar and fixing exchange rates. In a multipolar world, the Bretton Woods system faces several challenges, including

U.S. dollar dependency: The system is heavily dependent on the stability of the U.S. dollar, and fluctuations or disorderly devaluations in its value could have major impacts on other currencies and the global economy.

Limited adaptability: The fixed exchange rate regime can’t easily adjust to changes in the global economy and will often lead to imbalances and trade conflicts.

Unequal economic growth: The Bretton Woods system was designed for a world dominated by two major powers, the United States and the Soviet Union. In a multipolar world with multiple centers of power, such a system will struggle to accommodate diverse levels and systems of economic growth and development.

Increased monetary competition: The rise of China and Russia’s pullout from the global financial system, together with increased monetary competition, has made it more difficult for the United States to maintain its dominant position in the global monetary system.

Inadequate response to crises: The system has been criticized for its inability to respond effectively to economic shocks and crises, such as the oil crisis of the 1970s.

The systemic challenges faced by the Bretton Woods institutions in a multipolar world have contributed to its gradual decline and calls for a shift toward a new diverse and inclusive global monetary system, in which the various regions can come together to agree on a common playbook and rules of engagement. With the old order on the retreat, the new order is yet to take its final form, but we are beginning to see signs of the shape of things to come.

The reluctance of developing countries to accept the “Washington consensus” can be seen as a rejection of the old system and its shortcomings. The economic paradigms that have dominated the post-World War II era are no longer seen as relevant or effective in a rapidly changing and highly volatile multipolar world, and developing countries are seeking new ways to promote stability and growth that take into account their unique challenges and needs."

Actually, Ville Korpela, "Executive Director at Impact Innovation Institute.. He is also a member of the Councilors Program at the Atlantic Council" is not totally right.

On Sunday, February 5, 2023 at 3:52:07 PM UTC, ltlee1 wrote:
> "The Bretton Woods system, established in the ruins of a world left devastated by World War II, was a set of international monetary arrangements that aimed to promote economic stability and growth by linking national currencies to the U.S. dollar and fixing exchange rates. In a multipolar world, the Bretton Woods system faces several challenges, including
>
> U.S. dollar dependency: The system is heavily dependent on the stability of the U.S. dollar, and fluctuations or disorderly devaluations in its value could have major impacts on other currencies and the global economy.
>
> Limited adaptability: The fixed exchange rate regime can’t easily adjust to changes in the global economy and will often lead to imbalances and trade conflicts.
>
> Unequal economic growth: The Bretton Woods system was designed for a world dominated by two major powers, the United States and the Soviet Union. In a multipolar world with multiple centers of power, such a system will struggle to accommodate diverse levels and systems of economic growth and development.
>
> Increased monetary competition: The rise of China and Russia’s pullout from the global financial system, together with increased monetary competition, has made it more difficult for the United States to maintain its dominant position in the global monetary system.
>
> Inadequate response to crises: The system has been criticized for its inability to respond effectively to economic shocks and crises, such as the oil crisis of the 1970s.
>
> The systemic challenges faced by the Bretton Woods institutions in a multipolar world have contributed to its gradual decline and calls for a shift toward a new diverse and inclusive global monetary system, in which the various regions can come together to agree on a common playbook and rules of engagement. With the old order on the retreat, the new order is yet to take its final form, but we are beginning to see signs of the shape of things to come.
>
> The reluctance of developing countries to accept the “Washington consensus” can be seen as a rejection of the old system and its shortcomings. The economic paradigms that have dominated the post-World War II era are no longer seen as relevant or effective in a rapidly changing and highly volatile multipolar world, and developing countries are seeking new ways to promote stability and growth that take into account their unique challenges and needs."
>
> Actually, Ville Korpela, "Executive Director at Impact Innovation Institute. He is also a member of the Councilors Program at the Atlantic Council" is not totally right.

Feb. 6 2023 Market Insider headline:
"Paul Krugman says not to worry about the dollar weakening despite recent challenges to its dominance"

Agree with Paul Krugman. However, the real issue is whether the US can afford dollar dominance if it
wants to revitalize its manufacturing.