Reports in the Financial Times today [1] that Europe is considering establishing its own European Monetary Fund may raise a few eyebrows.
The article asks what the react of the IMF might be. Possibly a more interesting question to consider is what the reaction of China and Asia as an economic region will be. Consider the scenario that economic recovery races ahead – but only in Asia. Europe’s move, if it is made, may be a catalyst to a multi-polar world, rather along the lines of that put forward by Fred Bergsten[2], where Asia establishes its own monetary fund and becomes increasingly independent of traditional international institutions.
References
[1] Barber, T. Brussels read to back monetary fund. Financial Times. March 8 2010.
[2] Bergsten, F. A Blueprint for Leadership in the 21st Century. Global Human Resources Forum. November 8 2009.