The Single Global Currency - Common Cents for Business
AbstractAs 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.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 6199.
Date of creation: 04 Jul 2007
Date of revision:
Publication status: Published in IABE-2007 Proceedings Number 1.III(2007): pp. 46-54
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;
Find related papers by JEL classification:
- F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
- F5 - International Economics - - International Relations, National Security, and International Political Economy
- E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
- E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-12-15 (All new papers)
- NEP-CBA-2007-12-15 (Central Banking)
- NEP-MAC-2007-12-15 (Macroeconomics)
- NEP-MON-2007-12-15 (Monetary Economics)
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