Roubini and Setser predict end of Bretton Woods 2

Nouriel Roubini and Brad Setser have released a new paper prophesising the end of the so-called "Bretton Woods 2" system. They claim that the willingness and ability of central banks in the periphery to support the US deficits at their current low cost will end sometime in the next two years.

The paper, entitled "Will the Bretton Woods 2 Regime Unravel Soon?", follows the authors' earlier work on "The sustainability of the US external balance". This was published in November 2004, and charted the

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