I don't have much opinion on this issue yet, but I'm gathering information. My first impression is no, considering what we have learned from the gold standard. However, there seems to be many good reasons for a new global currency:
A U.N.-appointed international panel led by Nobel laureate economist Joseph Stiglitz has urged a replacement of the dollar as the global currency, doing away with the Group of 20 financial organization, a global restriction on the size of banks, and a limit on bank transactions with tax havens.
The Stiglitz-led U.N. Commission of Experts, appointed in October to recommend how to overcome the global financial crisis, also proposed tight limits on financial risks that banks can assume. The group's report is to be issued Mar. 26, but a shorter, preliminary version has already been distributed.
Many economists agree that in the coming decades the dollar will become less central to the world economy as China continues to grow. But the suggestion assumed the appearance of something imminent. One worry is that, if it loses its status as holding the pre-eminent currency, the U.S. will have far more difficulty financing its deficits. Stiglitz said, "No one thinks it would happen overnight." [BW]
1 comments:
I think we need to get back to the basics and use tree bark as a more sustainable and friendly from of currency. I'll start; cutting my trees down~
Post a Comment