A regional economic arrangement for South America based on Davidson’s proposal for an International Monetary Clearing Union

Abstract

The economic globalization, underway since the 1970s, when the Bretton Woods international monetary system collapsed, has been responsible for several exchange rate and financial crises in the world economy. In the absence of a consensus among nation-states and multilateral institutions on the reform of the international monetary and financial system, the creation of regional economic arrangements has become an alternative. This article proposes a regional economic arrangement for South America based on Davidson’s plan for an International Monetary Clearing Union. 

JELClassification: E12; F02; F15; F33.