The Single Global Currency - Common Cents for Commerce

Bonpasse, Morrison (2008): The Single Global Currency - Common Cents for Commerce.

Abstract

As globalization continues, businesses are increasingly importing and exporting from countries with different currencies. To conduct that business, they 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. The costs of these tasks to such firms are significant. 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 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. Much further research is needed to identify the benefits of a Single Global Currency and the steps and schedule necessary for implementation.

• Item Type: MPRA Paper
• Language: English
• 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, trade, commerce
• Subjects: F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance; F - International Economics > F5 - International Relations, National Security, 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, and General Outlook

References

Bank for International Settlements, "Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity in 2007, December, 2007, at http://www.bis.org/publ/rpfxf07t.pdf?noframes=1 Bonpasse, Morrison, The Single Global Currency - Common Cents for the World, Single Global Currency Assn., Newcastle, ME 2006, 2007, 2008. at MPRA, http://mpra.ub.uni-muenchen.de/1175/. 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 . Brown, Gregory W. and Chew, Donald H., Editors, Corporate Risk - Strategies and Management. Risk Books , London, 1999. 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. Carchedi, Guidliemo, For Another Europe, Verso Publishers, London 2001. Cooper, Richard, "A Monetary System for the Future", Foreign Affairs, Fall 1984. "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. 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. Jayaraman, T.K., "A Single Currency for the Pacific Island Countries: a Stepwise Approach", Asia Pacific Development Journal, June 2004. 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. 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. "A Theory of Optimum Currency Areas", American Economic Review, May 1961. "The Case for a World Currency", Journal for Policy Modeling, June 2005. Rosenstreich, Peter, FOREX Revolution - An Insider's Guide to the Real World of Foreign Exchange Trading. Prentice-Hall, New Jersey, 2005. Sapsford, Jathon and Shirouzu, Northiko, "Japan's Rate Boost Would Come With Risks," The Wall Street Journal, 1 March 2006, p. 1. Scotiabank, "2005 Annual Report," Toronto, available at http://www.scotiabank.com/cda/content/0,1608,CID7148_LIDen,00.html Taylor, Bryan, "The Eurodollar", 1998, page 5, at http://www.globalfinancialdata.com/articles/euro.htm. 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.