World Money at the Palazzo MundellDoes the global economy need a...

World Money at the Palazzo Mundell
Does the global economy need a global currency?
by ROBERT L. BARTLEY
Monday, June 30, 2003 12:01 a.m. EDT

SANTA COLOMBA, Italy--At this rural crossroads a short cab ride outside Siena's medieval gates, the question of the day is: "Does the Global Economy Need a Global Currency?"

"Yes," declares former Federal Reserve Chairman Paul Volcker, adding that the 15 or so onlookers here are maybe half the people in the world willing to entertain the question seriously. They include former Israeli central bank head Jacob Frenkel, former Argentine Finance Minister Domingo Cavallo and currency-board champion Steve Hanke. They've been gathered by Nobel Prize economist Robert Mundell for his 10th Santa Colomba Conference.

http://www.opinionjournal.com/columnists/
rbartley/?id=110003691



Monetary Linking of Major Currencies

Robert Mundell has suggested at the World Economic Forum and elsewhere that the three major currencies (dollar, euro and yen) could be linked together or pegged to ech other in a fixed ratio. In order to do that, there would have to be an agreement among the three central banks to march to the same drummer. That would still leave the other countries/currencies of the world floating, but it would be in a more stable currency exchange world.
Political Union

For a few of the current 191 member states of the United Nations, political union is a possible next step toward a single global currency, as it was for Democratic Republic of Germany which united with the Federal Republic of Germany in 1990. Another nation which might take this route to the SGC is North Korea. When two or more countries join in a political union, they are, almost by definition, joined in a monetary union.


http://www.singleglobalcurrency.org/routes.html