Dmitry Medvedev, Russian president, this week reminded us that top officials are serious about international monetary reform. Bank of England governor Mervyn King has also stressed recently that such reform is the biggest challenge facing the international economy. Earlier remarks by People’s Bank of China governor Zhou Xiaochuan that essentially aim at a diversification of the international currency regime have propelled the issue to greater prominence.

This debate addresses the international monetary implications of the global crisis and seeks more efficient means to manage global liquidity. As such, it has significant implications for the US dollar and for international portfolio allocation in general.