Monday, 6 April 2009

Paul Volcker on common world currency

There is an increasing amount of chatter in the blogosphere on a new global currency. This is meme dissemination in action.

Some of the material is quite esoteric and academic. There are some interesting discussions at Terra TRC which recommends the establishment of a private global currency to facilitate trade and to act as counter-cyclical balance to the global economy's inevitable tendency towards bubbles and busts.

One of the most interesting quick quotes comes from a paper by Paul Volcker published in 2000 but where this excerpt seems to be right on the money (to coin - excuse me - a phrase).

Quoted in a white paper available from this source the former Fed Governor says

I happen to believe that the ultimate logic of economic globalization is a stable and common unit of account and an internationally accepted means of payment—in other words, a common world currency.

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