Bonpasse, Morrison (2007): The Single Global Currency - Common Cents for Business. Published in: IABE-2007 Proceedings , Vol. III, No. Number 1 (10. November 2007): pp. 46-54.
Download (70kB) | Preview
As globalization continues, businesses are increasingly importing and exporting from countries with different currencies. To conduct that business, they (whether one or both parties) must pay fees for exchanging one currency for another and they must determine the exchange rate for a particular time. If the transaction is to be conducted over time, they may purchase currency instruments to hedge against currency fluctuation. All of these tasks add up to an average of about 5% of revenue for international businesses. As an increasing number of international businesses understand that these expensive tasks are unnecessary for trade conducted within a monetary union, these businesses are likely candidates to lead the effort to implement a Single Global Currency, to be managed by a Global Central Bank within a Global Monetary Union. In short, a "3-G" world. It's common cents.
|Item Type:||MPRA Paper|
|Original Title:||The Single Global Currency - Common Cents for Business|
|Keywords:||Single Global Currency, monetary union, dollar, euro, European Monetary Union, Global Central Bank, Global Monetary Union, international monetary system, Bretton Woods, foreign exchange, currency, currency crisis, transaction costs|
|Subjects:||F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance
F - International Economics > F5 - International Relations and International Political Economy
E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit
E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook
|Depositing User:||Morrison Bonpasse|
|Date Deposited:||10. Dec 2007 01:17|
|Last Modified:||18. Feb 2013 11:40|
Books: Bonpasse, Morrison, The Single Global Currency - Common Cents for the World, Single Global Currency Assn., Newcastle, ME 2006, 2007. The original 2006 edition is available online at the website of the Single Global Currency Assn. at www.singleglobalcurrency.org and at the Munchen RePEc archive at http://mpra.ub.uni-muenchen.de/1175/. The 2007 Edition was published in January 2007. The 2008 Edition will be published in January 2008 and subsequent editions annually thereafter until the goal of a Single Global Currency is attained.
Brown, Gregory W. and Chew, Donald H., Editors, Corporate Risk - Strategies and Management. Risk Books , London, 1999.
Carchedi, Guidliemo, For Another Europe, Verso Publishers, London 2001.
De Grauwe, Paul and Melitz, Jacques, editors, Prospects for Monetary Unions after the Euro, MIT Press, Cambridge, Mass., 2005.
Emerson, Michael; Gros, Daniel; Italiener, Alexander; Pisani-Ferry, Jean; and Reichenbach, Horst, One Market, One Money - An Evaluation of the Potential Benefits and Costs of Forming an Economic and Monetary Union. Oxford: Oxford University Press, 1992.
Rosenstreich, Peter, FOREX Revolution - An Insider's Guide to the Real World of Foreign Exchange Trading. Prentice-Hall, New Jersey, 2005.
Journal Articles: Cooper, Richard, "A Monetary System for the Future", Foreign Affairs, Fall 1984.
Mundell, Robert, "A Theory of Optimum Currency Areas", American Economic Review., May 1961.
Jayaraman, T.K., "A Single Currency for the Pacific Island Countries: a Stepwise Approach", Asia Pacific Development Journal, June 2004.
Mendizabal, Hugo R., "Monetary Union and the Transaction Cost Savings of a Single Currency," Review of International Economics, Vol. 10, Issue 2, 2002, pp. 263-77.
Mundell, Robert, "A Theory of Optimum Currency Areas", American Economic Review, May 1961. Mundell, Robert, "The Case for a World Currency", Journal for Policy Modeling, June 2005.
Magazines: Cover Story, The Economist, "Get Ready for the Phoenix", 9 January 1988, pp. 9-10.
Warburton, Brian, "The Case for a Single Global Currency", AmCham Magazine, American Chamber of Commerce, Belgium, 1996, No. 514, p. 28.
Newspapers: Langley, Alison, "Strong Franc Helps Reduce Nestle's Profit," The New York Times, 21 August 2003, p. W1.
Reuters Clip, "Company News; Avon Says It Will Meet or Beat Analysts' Expectations. The New York Times, 27 June 2002.
Sapsford, Jathon and Shirouzu, Northiko, "Japan's Rate Boost Would Come With Risks," The Wall Street Journal, 1 March 2006, p. 1.
WSJ Clip, "Loss is Expected for First Half on Foreign Exchange Setback," The Wall Street Journal, 6 October 2003, p. B3.
Internet: Bank of America, "Financial Review: Statement and Notes: Note 1, Summary of Significant Accounting Principles," 2004 Annual Report, at http://www.bankofamerica.com/annualreport/2004/backmatter/cfsn/cfsn_note1.cfm
Bordo, Michael and Cooper, Richard, "Proposal for a Common Currency among Rich Democracies." Oesterreichische National Bank, Working paper #127, September, 2006, at http://www.oenb.at/de/img/wp127_tcm14-42690.pdf .
Buiter, Willem, "Optimal Currency Areas: Why Does the Exchange Rate Matter?" given at the Royal College of Physicians, Edinburgh, on 26 October 1999, at http://www.nber.org/~wbuiter/scotland.pdf p. 2.
Carabott, Michael, "HSBC announces Lm36.7 pre-tax profit", The Malta Independent Online, 17 February 2006, at http://188.8.131.52/ind/news.asp?newsitemid=28383.
Cooper, Richard, "Toward A Common Currency?" June 2000, p. 22-23, presented at the conference on the Future of Monetary Policy and Banking, organized by the IMF and the World Bank, at http://www.worldbank.org/research/interest/confs/upcoming/papersjuly11/cooper.pdf.
European Commission, "The Cost of Multicurrency Management - A remaining barrier to trade and investment," EUROPEAN ECONOMY, a semi-annual publication of the European Commission, No. 63, 1997, at p. 85, at http://europa.eu.int/comm/economy_finance/publications/european_economy/1996/eers4_1996en.pdf
Honda, "Annual Report 2004", "Risk Factors" at http://www.world.honda.com/investors/annualreport/2004/10.html
IMF, "Global Financial Stability Report," International Monetary Fund, 2006, Table 3 in Statistical Appendix, at p. 171, at http://www.imf.org/External/Pubs/FT/GFSR/2005/02/pdf/statappx.pdf.
Kohili, Ulrich, Chief Economist, Swiss National Bank, 1 December 2003 speech, at http://www.swissplus.ch/newsletter-nov-2003?newsid=5531.
Murray, John, "Why Canada Needs a Flexible Exchange Rate," July, 1999, for a conference at Western Washington University, 30 April 1999, at http://epe.lac-bac.gc.ca/100/200/301/bankofcanada/working_papers-ef/1999/99-12/wp99-12.pdf.
Kaiser, Johannes and Kube, Sebastian, "Currency Speculation Behaviour of Industrial Firms: Evidence from a Two-Country Laboratory Experiment," 9 December 2005, at http://econwpa.wustl.edu/eps/exp/papers/0511/0511005.pdf.
Reuters, "Annual Report 1999," Section 7 "Treasury Management," at http://about.reuters.com/ar1999/frandstat/oandfr/treasman.htm
Scotiabank, "2005 Annual Report," Toronto, available at http://www.scotiabank.com/cda/content/0,1608,CID7148_LIDen,00.html
Single Global Currency Assn., table of "Currencies by Country" at http://www.singleglobalcurrency.org/currencies_by_country.html.
Taylor, Bryan, Chief Economist at Global Financial Data, "The Eurodollar", 1998, page 5, at http://www.globalfinancialdata.com/articles/euro.htm.