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
Is It Time for Global Money?
Global currency and central bank would lack public legitimacy, but nations can support tools that provide global financial stability
Wednesday, November 18, 2015
Larry Hatheway is chief economist of GAM Holding. Alexander Friedman, Group CEO of GAM Holding, was global chief investment officer of UBS Wealth Management, chief financial officer of the Bill & Melinda Gates Foundation, and a White House fellow during the Clinton Administration.
http://www.project-syndicate.org/commentary/global-currency-not-only-key-to-impr...
© 1995 – 2015 Project Syndicate