The Theoretical Foundations of an Extranational Composite Currency with Stable Purchasing Power, and their Implications

Jacques Riboud

Chapter 14 in A Stable External Currency for Europe, 1991, pp 168-181 from Palgrave Macmillan

Abstract: Abstract You say that you are doubtful, that my demonstration of the theoretical foundations of the ES does not convince you, that a currency unit capable of retaining its value in real terms is ‘contrary to the nature of things’. And then you add: ‘Everybody admits that there is a need for a reliable standard of measurement, and therefore for a currency with a purchasing power which, to quote The Economist, “will not flicker”. If such a thing were possible’, you argue, ‘the fact would be known and such a currency would already have been created; it does not exist because no currency has ever been capable of resisting the pressure of costs, the effects of supply and demand and the law of the market.’

Keywords: Money Supply; Foreign Currency; Purchasing Power; National Currency; Currency Unit (search for similar items in EconPapers)
Date: 1991
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-11821-2_15

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DOI: 10.1007/978-1-349-11821-2_15

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