Get Ready for a World Currency

  • Myron J. Frankman
Part of the International Political Economy Series book series (IPES)


Humankind has come a long way since ‘money’ emerged as a device for facilitating the exchange of goods and services. Money has evolved, by an uncertain trajectory, from natural objects to human artifacts, to fiat money, to ledger entries, and to electronic impulses with or without tangible counterparts. Transactions have also coevolved to include face-to-face, multi-faceted encounters between buyers and sellers, and impersonal exchanges, often at a distance and often of financial claims not directly rooted in production processes. Those of us who awake to radio or TV broadcasts are greeted on the morning of each working day with a reminder of the global reach of money by market quotations from around the world—finance being one remaining empire on which the Sun never sets.


Exchange Rate Central Bank Monetary Union Exchange Rate Change World Currency 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


  1. 3.
    Richard Cooper, ‘A Monetary System for the Future’, Foreign Affairs, 63 (Fall) (1984), p. 181.CrossRefGoogle Scholar
  2. 4.
    Charles Kindleberger, The World in Depression 1929–1939 (Berkeley: University of California Press, 1973), p. 172.Google Scholar
  3. 6.
    Robert H. Wade, ‘Capital and Revenge: The IMF and Ethiopia’, Challenge, 44 (Sept./Oct. 2001), pp. 67–75.Google Scholar
  4. 8.
    Thorstein Veblen, The Theory of Business Enterprise (New York: Scribner’s, 1904).Google Scholar
  5. 9.
    John Maynard Keynes, The General Theory of Employment Interest and Money (London: Macmillan, 1936), p. 159.Google Scholar
  6. 10.
    For example, the following appeared in an undergraduate textbook: ‘exchange rates are asset prices and so considerable volatility is to be expected.’ Paul Krugman and Maurice Obstfeld, 2nd edn, International Economics: Theory and Policy (Glenview, IL: Scott, Foresman, 1988), p.570.Google Scholar
  7. 11.
    Michael Mussa, Morris Goldstein, Peter B. Clark, Donald J. Mathieson, and Tamim Bayoumi, ‘Improving the International Monetary System: Constraints and Possibilities’, IMF Occasional Paper No. 116 (January 1995), pp. 18, 20 (emphasis added).Google Scholar
  8. 12.
    John Williamson, The Crawling Band as an Exchange-Rate Regime: Lessons from Chile, Colombia, and Israel (Washington, DC: Institute for International Economics, 1996).Google Scholar
  9. 15.
    Ronald McKinnon, An International Standard for Monetary Stabilization (Washington, DC: Institute for International Economics, 1984), p. 13.Google Scholar
  10. 16.
    Ronald McKinnon, ‘Optimum Currency Areas’, American Economic Review, 53 (1963), pp. 717–25.Google Scholar
  11. See Henry Wallich, Monetary Problems of an Export Economy: The Cuban Experience 1914–1947 (Cambridge, MA: Harvard University Press, 1950), for a rudimentary cost–benefit evaluation for Cuba of not having its own currency.CrossRefGoogle Scholar
  12. 19.
    Ricardo Ffrench-Davis and Manuel Agosín, Managing Capital Flows in Latin America, UNDP Office of Development Studies, Discussion Paper No. 8 (1995).Google Scholar
  13. 20.
    Robert Mundell, ‘A Theory of Optimum Currency Areas’, American Economic Review, 51 (Sept. 1961), pp. 657–65.Google Scholar
  14. 21.
    Delbert Snider, ‘Optimum Adjustment Processes and Currency Areas’, Essays in International Finance, 62 (Oct. 1962), p. 15.Google Scholar
  15. 24.
    Warren Smith, ‘Are There Enough Policy Tools?’, American Economic Review, 55 (Mar. 1965), pp. 208–20.Google Scholar
  16. 26.
    In Fred Hirsch, Michael Doyle, and Edward L. Morse, Alternatives to Monetary Disorder (New York: McGraw-Hill, 1977).Google Scholar
  17. 29.
    See ‘Who Lost Russia?’ (Chapter 5), in Joseph Stiglitz, Globalization and its Discontents (New York: W.W. Norton, 2002), pp. 133–65.Google Scholar
  18. 32.
    James Tobin, The New Economics One Decade Older, Eliot Janeway Lectures, 1972 (Princeton: Princeton University Press, 1974).Google Scholar
  19. 33.
    Bank for International Settlements, The Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity (2002), Scholar
  20. 34.
    James Tobin, ‘A Proposal for International Monetary Reform’, Eastern Economic Journal, 4 (1978), pp. 153–59.Google Scholar
  21. 35.
    See Paul Bernd Spahn, ‘The Tobin Tax and Exchange Rate Stability’, Finance and Development, 33 (June 1996), pp. 24–27, and a dissenting comment from Janet Stotsky, ‘Why a Two-Tier Tobin Tax Won’t Work’, Finance and Development (June 1996), pp. 28–29.Google Scholar
  22. 39.
    Andre W.Berg and Eduardo Borensztein, ‘Full Dollarization: The Pros and Cons’, Economics Issues, 24 (Dec.) (Washington: IMF, 2000), p. 5.Google Scholar
  23. 42.
    John Pinder, ‘Integrating Divergent Economies: The Extranational Method’, Michael Hodges and William Wallace, eds, Economic Divergence in the European Community (London: George Allen & Unwin, 1981), p. 198.Google Scholar
  24. 44.
    Rudiger Dornbusch, ‘Fewer Monies, Better Monies’ (Dec. 2000), Scholar
  25. 45.
    Robert Triffin, ‘The International Monetary System in the Year 2000’, Jagdish Bhagwati, ed., Economics and World Order; From the 1970’s to the 1990’s (New York: Macmillan, 1972), p. 192.Google Scholar
  26. 46.
    Barry Eichengreen, International Monetary Arrangements for the 21st Century (Washington, DC: Brookings Institution, 1994), p. ix.Google Scholar
  27. 48.
    James E. Meade, The Economic Basis of a Durable Peace (New York: Oxford University Press, 1940), pp. 35–57.Google Scholar
  28. 50.
    James Forder, ‘Central Bank Independence: Reassessing the Measurements’, Journal of Economic Issues, 33 (1999), pp. 23–40.Google Scholar

Copyright information

© Myron J. Frankman 2004

Authors and Affiliations

  • Myron J. Frankman
    • 1
  1. 1.McGill UniversityCanada

Personalised recommendations