Is It Time for Global Money?

A fragmented set of currencies pose some risks, argue Larry Hatheway and Alexander Friedman for Project Syndicate, and a global currency could reduce currency wars and increase efficiency and price transparency. But such a currency is unlikely because the system would require legitimacy unavailable beyond the level of national-state. “At the supra-national level, legitimacy remains highly questionable, as the experience of the eurozone amply demonstrates,” they suggest. Complex decisions of central bankers are rooted in the rule of law. Hatheway and Friedman urge support for multilateral institutions like the International Monetary Fund to review a range of financial tools that provide global financial stability. – YaleGlobal