A Unique World Currency: Geopolitics, panacea, idealism?

02Ene10

In the advance of the G-20 summit (April 2009), the idea of a single global currency (SGC) was forcefully advocated by both Russia and China. The governments of both nations propose the creation of such a currency (the Globo) as an alternative to the US dollar for international exchange transactions. On the surface, this proposal may be regarded as yet another move in the geopolitical chessboard, a more careful pragmatic analysis is warranted given the constant resurgence of the idea as a reactive measure during stock-exchange crashes (1929, 1987, 1998). In this light, the notion of a single currency seems closer to the mindset of the Bretton Woods system and John Maynard Keynes’ Bancor than to the understandings that guided the creation of NAFTA and the World Trade Organization. We attempt to examine this proposal objectively by juxtaposing the arguments of those who are in favor of the idea and those who are eager to dismiss it.

Filed under: BRICs, Diplomacia, economia mundial, economia usa, Escuela Austriaca, globalizacion, internacional, política monetaria, politica internacional, Uncategorized   |  1 Comment