Some initiatives or ideas have direct acceptance. Then the question is: how do we do it, is the project viable? Other ideas may be viable, but they will be resilient from the day they are announced. For me, the only currency in the world would fall into the second category.
When there was only one world currency and one central bank, I was imagining how financial crises would evolve. It could have been better, but it could have been worse.
In my opinion, the only currency in the world is neither feasible nor desirable.
To start with the latter: it is not desirable, because I would imagine that the system is so robust. I can’t fully work out this point, but when I think about being strong I mean that there are some powers that keep a system in balance. Like the ECB and the Fed and other institutions.
It is not feasible – again, in my opinion – it is a merger between the Fed and the ECB.
Again, working on this statement would require a large sequence of articles. I am referring to a symbolic merger between DaimlerBenz and Chrysler that took place in 1998 and was divested in 2007. Not everything went well.
And I think it’s better that way. Let the Fed do it the American way and the ECB the European way. Somewhere in the middle we find the best solution.
Let’s forget about a possible merger between the two …
HJB