{"id":45078,"date":"2019-04-06T07:02:56","date_gmt":"2019-04-06T12:02:56","guid":{"rendered":"https:\/\/olduvai.ca\/?p=45078"},"modified":"2019-04-06T07:02:58","modified_gmt":"2019-04-06T12:02:58","slug":"time-for-a-true-global-currency","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=45078","title":{"rendered":"Time for a True Global Currency"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/webapi.project-syndicate.org\/library\/5275211578da1e454108a58263bd24ce.jpg\" alt=\"ocampo33_Alicia Llop_getty images_coins\"\/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.project-syndicate.org\/commentary\/imf-special-drawing-right-global-currency-by-jose-antonio-ocampo-2019-04\/english#comments\">Time for a True Global Currency<\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The International Monetary Fund\u2019s global reserve asset, the Special Drawing Right, is one of the most underused instruments of multilateral cooperation. Turning it into a true global currency would yield several benefits for the global economy and the international monetary system.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">NEW YORK \u2013 This year, the world commemorates the anniversaries of two key events in the development of the global monetary system. The first is the creation of the International Monetary Fund at the Bretton Woods conference 75 years ago. The second is the advent, 50 years ago, of the&nbsp;<a href=\"https:\/\/www.imf.org\/en\/About\/Factsheets\/Sheets\/2016\/08\/01\/14\/51\/Special-Drawing-Right-SDR\" target=\"_blank\" rel=\"noreferrer noopener\">Special Drawing Right<\/a>&nbsp;(SDR), the IMF\u2019s global reserve asset.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When it introduced the SDR, the Fund hoped to make it \u201cthe principal reserve asset in the international monetary system.\u201d This remains an unfulfilled ambition; indeed, the SDR is one of the most underused instruments of international cooperation. Nonetheless, better late than never: turning the SDR into a true global currency would yield several benefits for the world\u2019s economy and monetary system.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The idea of a global currency is not new. Prior to the Bretton Woods negotiations, John Maynard Keynes suggested the \u201cbancor\u201d as the unit of account of his proposed International Clearing Union. In the 1960s, under the leadership of the Belgian-American economist Robert Triffin, other proposals emerged to address the growing problems created by the dual dollar-gold system that had been established at Bretton Woods. The system finally collapsed in 1971. As a result of those discussions, the IMF approved the SDR in 1967, and included it in its Articles of Agreement two years later.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Although the IMF\u2019s issuance of SDRs resembles the creation of national money by central banks, the SDR fulfills only some of the functions of money. True, SDRs are a reserve asset, and thus a store of value. They are also the IMF\u2019s unit of account. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Time for a True Global Currency The International Monetary Fund\u2019s global reserve asset, the Special Drawing Right, is one of the most underused instruments of multilateral cooperation. Turning it into a true global currency would yield several benefits for the global economy and the international monetary system. NEW YORK \u2013 This year, the world commemorates [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,6],"tags":[4051,418,434,25534,8402],"class_list":["post-45078","post","type-post","status-publish","format-standard","hentry","category-economics","category-liberty","tag-global-currency","tag-imf","tag-international-monetary-fund","tag-jose-antonio-ocampo","tag-project-syndicate"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45078","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=45078"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45078\/revisions"}],"predecessor-version":[{"id":45079,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45078\/revisions\/45079"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=45078"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=45078"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=45078"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}