The possibility of a new Transatlantic currency?

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SamLinder's picture
SamLinder
Status: Diamond Member (Offline)
Joined: Jul 10 2008
Posts: 1499
The possibility of a new Transatlantic currency?

Now here's an interesting concept - could this lead to a World Currency some day?

Another possible outcome, which you hear almost no
mention of, is the possibility of a new Transatlantic currency. When I mention
this possibility, everyone laughs, but think about it for a second. The
economic crisis on both sides of the Atlantic is enormous. Both are resorting
to the same formulas – large fiscal stimulus and quantitative easing (a
word invented by central bankers because 'printing money' smacks too much of Zimbabwe).
There is a real risk that the entire financial and monetary system on either
side of the pond needs to be re-designed. If that were to happen, I am pretty
confident that the Fed and the ECB would at least sit down and discuss the possibility of a joint currency. That
would also allow the UK to join a currency union without too much egg on its
battered face.

http://www.investorsinsight.com/blogs/john_mauldins_outside_the_box/arch...

Remember the old saying, "Never Say Never!"

Fivemileshigh's picture
Fivemileshigh
Status: Member (Offline)
Joined: Dec 22 2008
Posts: 17
Re: The possibility of a new Transatlantic currency?
SamLinder wrote:

Now here's an interesting concept - could this lead to a World Currency some day?

 

It may well be. The unification of Canada, the US, Mexico and the EU can't be too far beyond the horizon. I bet the Ameuro isn't far beyond that.

scepticus's picture
scepticus
Status: Silver Member (Offline)
Joined: Jan 16 2009
Posts: 129
Re: The possibility of a new Transatlantic currency?

A notional world currency already exists based on Standard Drawing Rights, which is the unit of account used by the IMF. Stiglitz has suggested that moving international settlements to SDRs would smoothe out the very choppy forex situation and provide a way for the asian economies to diversify away from the dollar without crashing it. 

I'm not sure exactly how this is supposed to work though, or whether the idea has been completely discredited or not. Anyone else?

 

 

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