Sunday, November 7, 2010
Is there a better way to organise the world’s currencies?
There have been a lot of complaints about the dollar being the main reserve currency because it makes all other countries dependent on America's monetary policies. So, there have been proposals about how to change the world's monetary system. In this article, the author examines the lessons from history about the attempts to alter the world's currencies and their impact.
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2 comments:
Certainly, switching to the gold standard is not going to do any good. Infact, it can create more problems due to volatility. In the past there were talks about making the euro the reserve currency as the euro is stronger than the dollar. However, after the Greece fiasco, EU should reconsider making its currency the reserve currency.
There has to be a main currency reserve no matter what. All the countries will have to depend on some type of monetary policy weather it be the euro or the U.S. dollar. I think changing the main currency reserve would be very difficult and we should just leave it how it is.
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