Toward a Global Monetary Order

Author
Gerald P. O'Driscoll Jr.
Content Type
Journal Article
Journal
The Cato Journal
Volume
32
Issue Number
2
Publication Date
Spring / Summer 2012
Institution
The Cato Institute
Abstract
I will begin by disputing that there is a global monetary system. We do not have a system in any meaningful sense. There are 182 independent currencies in the world. Some currencies are fixed in relation to other, larger currencies (e.g., the Hong Kong dollar to the U.S. dollar). Some currencies move within a band against other currencies (e.g., the Singapore dollar and the Chinese yuan). Many currencies float on foreign exchange markets, but few float freely. Four major currencies float against each other: the U.S. dollar, the euro, the pound, and the yen. Countries also change their foreign exchange regime (e.g., Mexico in recent decades).
Topic
Foreign Exchange
Political Geography
Mexico, Singapore