Medvedev's comments are a reversal of Russian position from a lukewarm response following a looser outline for a worldwide currency by Kazakhstani president Nursultan Nazarbayev . On March 11, Nazarbayev suggested the establishment of the "acmetal", a portmanteau of " acme " and "capital", as a reserve currency replacing the ruble in international transactions, first for Central Asia and then worldwide. 1999 Economics Nobel laureate Robert Mundell, speaking to the Daily Telegraph, endorsed the idea, saying "It would be a very good idea if the G-20 took that idea up in London". 2001 Nobel economics prize winner Joseph Stiglitz , meanwhile, said the new currency could come about quickly if it was based on an expansion of the IMF's already established system of Special Drawing Rights, units of exchange used by the IMF which already have some of the features of currency. Stiglitz argued that, as the US dollar has become the standard global reserve currency, it has inadvertently created a system which hurts the world economy. "It's a net transfer, in a sense, to the United States of foreign aid," he argued, reasoning that when other countries purchase US dollars in order to use them on international markets (such as for the buying and selling of petroleum), they effectively give the US a zero-interest loan — sometimes at times when they can least afford it. Stiglitz made his comments as head of a United Nations panel of economists giving recommendations to address the global financial crisis.
Medvedev's comments are a reversal of Russian position from a lukewarm response following a looser outline for a worldwide currency by Kazakhstani president . On March 11, Nazarbayev suggested the establishment of the "acmetal", a portmanteau of " " and "capital", as a reserve currency replacing the ruble in international transactions, first for and then worldwide. 1999 Economics Nobel laureate Robert Mundell, speaking to the Daily Telegraph, endorsed the idea, saying "It would be a very good idea if the G-20 took that idea up in London". 2001 Nobel economics prize winner , meanwhile, said the new currency could come about quickly if it was based on an expansion of the IMF's already established system of Special Drawing Rights, units of exchange used by the IMF which already have some of the features of currency. Stiglitz argued that, as the US dollar has become the standard global reserve currency, it has inadvertently created a system which hurts the world economy. "It's a net transfer, in a sense, to the United States of foreign aid," he argued, reasoning that when other countries purchase US dollars in order to use them on international markets (such as for the buying and selling of petroleum), they effectively give the US a zero-interest loan — sometimes at times when they can least afford it. Stiglitz made his comments as head of a United Nations panel of economists giving recommendations to address the global financial crisis.
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Nursultan Nazarbayev
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acme
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Central Asia
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Joseph Stiglitz