A single currency: utopia today? Reality tomorrow?

Authors

  • C. DE STRYCKER

DOI:

https://doi.org/10.13133/2037-3643/10819

Keywords:

Fluctuating exchange rates, single international currency unit, financial policies, monetary adjustments

Abstract

The collapse of the Bretton Woods international monetary system in 1971 inaugurated an era of highly fluctuating exchange rates. Part of the reason for this volatility has been the almost complete internationalisation of capital markets, with national currencies remaining subject to political influences and the vagaries of changing trade patterns. One possible solution to these problems would be the adoption of a single international currency unit. Although this would not remove the problem inherent in balance of payments disequilibrium, it would nevertheless impose greater market discipline on financial policies by removing the option of monetary adjustments.

 

JEL: F31, E42

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Published

2013-10-17

How to Cite

DE STRYCKER, C. (2013). A single currency: utopia today? Reality tomorrow?. PSL Quarterly Review, 39(157). https://doi.org/10.13133/2037-3643/10819

Issue

Vol. 39 No. 157 (1986)

Section

Editorial

License

 
 
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