The Time is Ripe for an International Currency Reserve

Free movement of capital and trade in financial services are driving regional currency consolidation. We compare the relative merits of adopting an international currency unilaterally or multilaterally. While EMU is the exemplar of the multilateral approach characterized by assured seignior age sharing and co-management of the joint monetary asset, unilateral monetary unions are represented by the proposed formal dollarization of some countries in Latin America. This paper finds that while such dollarization could be useful for the period ahead, it carries the seeds of its own destruction because peripheral countries that lose their currency need not support this one-sided arrangement indefinitely

Download Full-text

Money Decentralization under Direct Democracy Procedures. The Case of Classical Athens

Journal of Risk and Financial Management ◽

10.3390/jrfm14010030 ◽

2021 ◽

Vol 14 (1) ◽

pp. 30

Author(s):

Emmanouil-Marios L. Economou ◽

Nicholas C. Kyriazis ◽

Nikolaos A. Kyriazis

Keyword(s):

Monetary Policy ◽

Central Bank ◽

Direct Democracy ◽

Hellenistic Period ◽

International Currency ◽

Monetary System ◽

Mediterranean World ◽

The Stability ◽

City State

By analyzing the case of Athens during the Classical period (508-323 BCE) the main thesis of this paper is that under direct democracy procedures and the related institutional setup, a monetary system without a Central Bank may function relatively well. We focus on the following issues: (i) Τhe procedures of currency issuing in the Athenian city-state, (ii) why the Athenian drachma become the leading international currency in the Mediterranean world (iii) how and towards which targets monetary policy without a Central Bank was possible (iv) defining the targets of monetary policy and the mechanisms for its implementation (v) the role of money in the economy (vi) the issue of deficit spending (vii) the reasons of the replacement of the Athenian drachma as a leading currency by others from the Hellenistic period onwards (viii) the correlation of our findings regarding the decentralized character of monetary policy in Classical Athens to today’s realities, such as the issue of cryptocurrencies. Our analysis shows that monetary policy without a Central Bank was possible, with its foremost aim being the stability of the currency (mainly, silver coins) in order to enhance trust in it and so, make it an international currency which could outcompete other currencies. Since there was no Central Bank like today, monetary policy decisions were taken by the popular assembly of citizens in combination with the market forces themselves.

Download Full-text

International Currency Experience.

Economica ◽

10.2307/2550140 ◽

1945 ◽

Vol 12 (48) ◽

pp. 255

Author(s):

J. K. Horsefield

Keyword(s):

International Currency

Download Full-text

International Currency Experience. Lessons of the Inter-War Period

International Affairs ◽

10.2307/3018825 ◽

1945 ◽

Vol 21 (3) ◽

pp. 398-399

Author(s):

M. F. W. J.

Keyword(s):

International Currency

Download Full-text

The Effect of International Currency Crises on the Balance of Payments: Evidence From Jordan

International Journal of Financial Research ◽

10.5430/ijfr.v11n5p275 ◽

2020 ◽

Vol 11 (5) ◽

pp. 275

Author(s):

Tamer Rawashdeh ◽

Mahmoud Al-Rdaydeh ◽

Basem Hamouri

Keyword(s):

Currency Crises ◽

Balance Of Payments ◽

Bounds Testing ◽

Testing Technique ◽

International Currency ◽

The United Kingdom ◽

Long Run ◽

Short Run ◽

Us Dollar ◽

Japanese Yen

The effect of the international currency crises on the Jordanian balance of payments (BoP) between Q1-2000 and Q4-2017 was investigated in this paper. The currency crises are represented by the various exchange rates (ER) for the Japanese Yen, United States (US) Dollar, Euro Member Countries, China Renminbi, and the United Kingdom (UK) Pound with the Jordanian Dinar. In approximating the potential short-run and long-run associations among the different ER variations and the BoP, the ARDL bounds testing technique was employed. The empirical findings revealed that variation in the ER rate for EUR/JOD had a positive significant impact on the BOP for the short-run and long-run relation, whereas, opposingly, for the JPY/JOD, it had a negative significant impact on the BoP in the short-run and long-run relations. For other currencies, the results varied. Therefore, to reduce the effect of currency fluctuations and resultant crises on the BoP, over-reliance on the promotion and importation of goods and domestic export products should be avoided. As such, in the context of the Jordanian economy, the country needs to diversify. Accordingly, this can only be achieved if the economy is expanded along with advancing and developing entrepreneurial innovation supported by fiscal disciplines.

Download Full-text