'Dollar as global currency is going to end'
Source: Hueiyen News Service / Newmai News Network
Guwahati, January 10 2012:
The use of dollar as global currency is going to end and you may not need to convert your currency into dollar anymore when your tour foreign countries.
This has been predicted by Nobel laureate Joseph Stiglitz, who has been vigorously campaigning against globalization, in Guwahati today.
He predicted the end of the dollar as a global currency.
Joseph Stiglitz said a new currency standard might be evolved at the next G-20 meeting.
"I am for a new global reserve system because it might help stop money from moving in the wrong direction, which is from poor to rich countries.
China and Russia pushed for a new reserve system at the last G-20 meeting but the United States did not agree to let the dollar be replaced," Stiglitz said on Tuesday.
"Hopefully, there will be a consensus on a departure from the dollar-dominated regime" .
Awarded the economics Nobel in 2001, Stiglitz was in Guwahati to participate in a discussion titled 'Asia Rising: Implications for the World Economy'.
It entailed economist Lord Meghnad Desai throwing questions for Stiglitz to answer.
Stiglitz felt a new global monetary order was imminent in view of the slide in the US economy and the weakening of the Euro power.
Another factor driving the need for a change was China's emergence as a major economic power.
The Nobel laureate, however, allayed fears of a meltdown in India and China.
"Both countries have a sound savings culture, though China is way ahead.
Much of the financial problem that the US is facing today is because savings there is very low and people spend lavishly," he said.
Joseph also stressed the need for bridging the gap between the haves and have-nots.
"Concern for the poor and needy and bringing about changes in their economic condition is what I feel is basic economics.
Removing inequality is what I consider to be of prime importance and the centre of my economics," said Stiglitz, who teaches at Columbia University.
The Nobel laureate also warned against mega dams for being potentially harmful to the environment.
But, he pointed out; small and medium dams were good for the economy.
"Policy makers in India should make a note of this and frame their policies accordingly," Joseph said.