A crisis 'in' or 'of' the system

Mary attended the 2013 Y20 summit in Saint Petersburg where she represented The University of Melbourne's Faculty of Business and Economics. She is a Bachelor of Commerce student and is currently studying the Sponsorship Publications officer of the Economics Association of Australia.


The objective of this paper is to evaluate from a historical perspective whether with regards to the Gold Standard and other crises that have plagued the international monetary and financial framework, the GFC emerged within the system or as a result of the current framework. This paper highlights various reforms proposed by a \stakeholders followed by a G20 specific reform course.

Section 1 provides an analysis of former regimes, including the Gold Standard, the Bretton Woods system and the current framework with regard to key crises including the Great Depression and recent Global Financial Crisis. With consideration of the context in which each framework operated and each crisis emerged, an assessment of surrounding factors is also incorporated.

Following on from the evaluation of the current framework within Section 1, Section 2 details reform solutions ranging from those in favor of greater regulation including David Hetherington’s (of Per Capita Institutes) proposal to institute ‘Yourbank’, the international clearing union and deregulation and further flexibility in exchange rates..

Section 3 concludes the report with a G20 specific reform course to be adopted during the 2013 Russian presidency and further into the 2014 Australian presidency placing particular emphasis upon the centrality of the G20 Framework for strong sustainable growth (FSSG), the implementation of Basel III, the operation of the Financial Stability Board and the Troika to the attainment of this course of action.

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