Growing protectionism and what it portends for global economic growthnot to mention geopolitical stabilityinduces somber references to the year 1944. The rules-based Bretton Woods agreement hammered out by the Allies in July that year, while World War II still raged, puts into sharp relief the consequences of trade and currency wars.
Yet we dont have to go back 80 years to make the point that having a stable monetary foundation to support free trade and capital flows helps to strengthen economic and political alliances. It was in 1964, only sixty years ago, that Goldfinger premiered with Sean Connery starring as James Bond. Monetary economists of a certain age will no doubt recall with pleasure this action thriller.