Wednesday, January 19, 2011

Views in favor of a supranational currency

Advocates, notably Keynes,[11] of a global currency often argue[11] that such a currency would not suffer from inflation, which, in extreme cases, has had disastrous effects for economies. In addition, many[11] argue that a global currency would make conducting international business more efficient and would encourage Foreign direct investment (FDI).
An often over-looked alternative to an establishment-created global reserve currency is for anyone to adopt already existing mechanisms that traditionally has worked very well in conducting international business. There are, for example, no obstacles for legal or physical persons to start drawing contracts and invoicing in XAU - Gold - as opposed to the USD, the EUR or the YEN

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