UN Proposes New Global Currency To Create Stable Market
September 8, 2009
This isn’t the first time a call for a change of the current dollar standard has been called. India, Brazil, China, and Russia have all called for a joint currency.
The need for a single currency was brought up during the UN’s Conference on Trade and Development (UNCTAD) in Geneva.
“There’s a much better chance of achieving a stable pattern of exchange rates in a multilaterally-agreed framework for exchange-rate management. An initiative equivalent to Bretton Woods or the European Monetary System is needed,” Heiner Flassbeck, the co-author of the proposal, was quoted by Bloomberg.
The second author, Detlef Kotte, was also quoted by The Telegraph as saying:
“Replacing the dollar with an artificial currency would solve some of the problems related to the potential of countries running large deficits and would help stability. But you will also need a system of managed exchange rates.
“Countries should keep real exchange rates [adjusted for inflation] stable. Central banks would have to intervene and if not they would have to be told to do so by a multilateral institution such as the International Monetary Fund.”