The financial fragility of emerging countries and the role of international lender of last resort

There is still a lack of recognition both in mainstream economics and by influent policy makers of the fundamental role played by a flaw in the present international monetary and financial arrangements: when the main international standard and reserve currency is a national one and when there is not an international lender of last resort one can not expect to achieve lasting financial stability and sustainable economic growth. In this paper I try to reconsider and analyze both the un-sustainability of the present monetary arrangements and suggest the requirements of a stable international monetary and financial system in the spirit and updating Keynes’s plan at Bretton Woods conference.