Is it time for a world currency?

Rasul Shams

No 167, HWWA Discussion Papers from Hamburg Institute of International Economics (HWWA)

Abstract: There have been several proposals to reduce the observed volatility of flexible exchange rates. The paper reviews two recent opposite views on the appropriateness of a common world currency for this purpose. Referring to an adequately formulated theory of world money, it is shown that there is presently no alternative to a flexible exchange rate system. This system might, under specific conditions, gradually evolve into a world monetary system with a global currency. Developing some structural principles of the world economy the paper also explains some hitherto unexplained features in the development of international monetary relations.

Keywords: World Money; International Transactions; National Currencies as International Monies; Credit Money; Multi-currency Standard (search for similar items in EconPapers)
JEL-codes: F F3 F33 (search for similar items in EconPapers)
Date: 2002
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:hwwadp:26292

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