ONE WORLD, ONE CURRENCY: EXPLORING THE ISSUES

Along with globalization of trade and finance has come a certain globalization of money. Some countries have adopted monetary unions and currency boards; others increasingly use international currencies in place of national monies. This article explores the idea of a global money-framed here as a voluntary, representative arrangement based on accepted principles for optimal conduct monetary policy. It argues that if the current pace of economic and financial integration continues, a global money may emerge that is better adapted to internationalization of production and exchange-although such a change may be a long time in coming. (JEL "F330, F360, E420") Copyright 2006 Western Economic Association International.