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"The Single Global Currency: Common Cents for the World"



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End Notes, by chapter, and the Bibliography, for original edition of The Single Global Currency - Common Cents for the World, and subsequent editions in Reverse Chronological order.


Addendum, 2007

1. David Prosser, "London consolidates lead in global foreign exchange markets," The Independent , 24 October 2006, at http://news.independent.co.uk/business/news/article1919538.ece

2. Foreign Exchange Committee, Federal Reserve Bank of New York, "Semi-Annual Foreign Exchange Volume Survey," April 2006, at http://www.newyorkfed.org/fxc/volumesurvey/2006/aprilfxsurvey2006.pdf

3. Currency Trader , "International Market Summary," September 2006 (page 46), and August 2006 (page 34).

4. J. Alex Tarquinio, "Can the Dollar's Loss Become Your Portfolio's Gain?" New York Times , 21 May 2006, at http://select.nytimes.com/gst/abstract.html?res=F70A11FC385A0C728EDDAC0894DE404482&showabstract=1

5. Barbara Rockefeller, "Why is everybody losing money in forex?," Currency Trader , September 2006, at http://www.fxmoneymachine.com/ctm200609.pdf

6. David Leonhardt, "Gambling Against The Dollar," New York Times , 1 November 2006, at http://www.nytimes.com/2006/11/01/business/01leonhardt.html?ex=1320037200&en=036ab20bb5bb104a&ei=5088&partner=rssnyt&emc=rss

7. David Leonhardt, ibid .

8. Reuters, "Bank firm on $645m forex compo claim," The New Zealand Herald , 30 May 2006, at http://login.nzherald.co.nz/?redir=http://www.nzherald.co.nz/search/story.cfm?storyid=000EF4EC-C37D-147A-969883027AF1010F

9. Jeffrey T. Macher and Barak D. Richman , " Transaction Cost Economics: An Assessment of Empirical Research in the Social Sciences," Duke Law School Legal Studies paper 115, August 2006, at http://eprints.law.duke.edu/archive/00001581/

10. Sewell Chan and Matthew Healey, "The World's Coins Converge in the City's Meters," New York Times , 12 June 2006, page A 16, at http://select.nytimes.com/search/restricted/article?res=F50F1FFF38550C718DDDAF0894DE404482

11. David A. Kelly, "Practical Traveler: How to Get the Best Rate (and Avoid Fees)," New York Times , 25 June 2006, Page TR 6, at http://travel2.nytimes.com/2006/06/25/travel/25prac.html

12. World Tourism Organization website information, at http://www.traveldailynews.com/new.asp?newid=31023&subcategory_id=109

13. Eduardo Porter, "Flow of Immigrants' Money To Latin America Surges," New York Times , 19 October 2006, page A24, at http://www.nytimes.com/2006/10/19/us/19migrants.html?ex=1318910400&en=d34d106270048e26&ei=5088&partner=rssnyt&emc=rss

14. Congressional Research Service, "Report to Congress: U.S. Foreign Assistance to Latin America and the Caribbean," January 2006, at http://www.nationalaglawcenter.org/assets/crs/RL32487.pdf

15. Tahsin Saadi-Sedik and Martin Petri, " To Smooth or Not to Smooth - The Impact of Grants and Remittances on the Equilibrium Real Exchange Rate in Jordan," IMF Working paper 06/257, at http://www.imf.org/external/pubs/ft/wp/2006/wp06257.pdf

16. Peter Garnham, "Euro soars against greenback as US rates ease," The Australian , 29 November 2006, at http://www.theaustralian.news.com.au/printpage/0,5942,20838136,00.html .

17.Rodrigo de Rato, "Ensuring Global Economic Stability," Borsen-Zeitung , 12 September 2006, at http://www.imf.org/external/np/vc/2006/091206.htm

18. Francis Warnock, "How Might a Disorderly Resolution of Global Imbalances Affect Global Wealth?" IMF Working Paper 06/170, 1 July 2006, at http://www.imf.org/external/pubs/ft/wp/2006/wp06170.pdf

19. Keith Bradsher, "Leading Asian Economist Urges Joint Action on Dollar," The New York Times , 8 December 2006, page C6, at http://www.nytimes.com/2006/12/08/business/worldbusiness/08dollar.html

20. Michael Wines, "Zimbabwe, Subtracting Zeros, Adds To Discontent," New York Times , 8 August 2006, at http://select.nytimes.com/gst/abstract.html?res=F40C16F6355B0C7B8CDDA10894DE404482&showabstract=1

21. See the text and audio versions of the Abbott and Costello routine, at http://www.baseball-almanac.com/humor4.shtml

22. TradeArabia, "Euro to overtake the dollar by 2015, says UAE official," 18 November 2006, at http://www.tradearabia.com/tanews/newsdetails_snCM_article114607_cnt.html

23. Gabriele Galati and Philip Wooldridge, "The euro as a reserve currency: a challenge to the pre-eminence of the US dollar?" Bank for International Settlements, Working Papers No. 218, October 2006, at http://www.bis.org/publ/work218.htm

24. John Partridge, "Launch of Iranian Oil Market hits Wall," Globe and Mail, 14 March 2006, at http://www.theglobeandmail.com/servlet/Page/document/v4/sub/MarketingPage?user_URL=http://www.theglobeandmail.com%2Fservlet%2Fstory%2FLAC.20060314.RIRAN14%2FTPStory%2F%3Fquery%3Dbourse&ord=15021960&brand=theglobeandmail&redirect_reason=2&denial_reasons=none&force_login=false

25. "Iran replaces dollar with euro in most oil dealings," MEHRNEWS.com, 5 December 2006, at http://www.mehrnews.com:80/en/NewsDetail.aspx?NewsID=416994

26. Peter Garnham, op cit.

27. Tony Vorobyova, "FOREX-Euro rallies as Sweden ups its FX reserves share," Reuters, 21 April 2006, at http://www.global-view.com/research/index.html?nid=5093

28. TradeArabia, op cit .

29. Ewe-Ghee Lim, "The Euro's Challenge to the Dollar: Different Views from Economists and Evidence from COFER (Currency Composition of Foreign Exchange Reserves) and other Data," IMF Working Paper 06/153, June 2006, at http://www.imf.org/external/pubs/ft/wp/2006/wp06153.pdf

30. Chris Flood, "Bundesbank boosts sentiment for gold market," Financial Times , 6 October 2006, at http://www.ft.com/cms/s/15eeae1a-5493-11db-901f-0000779e2340.html

31. Gregory Hess and Kwanho Shin, "Understanding the Backus-Smith Puzzle: It's the (Nominal) exchange Rate, Stupid," February 2006, MPRA Paper No. 696, at http://mpra.ub.uni-muenchen.de/696/01/MPRA_paper_696.pdf See also the phrase "It's the currency, stupid" at page 166 of the 06 Edition.

32. Raghuram Rajan and Eswar Prasad, "Controlled Capital Account Liberalization: A Proposal," IMF Policy Discussion Paper, 05/07, November 2005, at http://www.imf.org/external/pubs/ft/pdp/2005/pdp07.pdf See also Nicolas Magud, Carmen Reinhart and Kenneth Rogoff, "Capital Controls: Myth and Reality - A Portfolio Balance Approach to Capital Controls, November 2005, at http://economics.uoregon.edu/papers/UO-2006-10_Magud_Controls.pdf

33. Rodrigo de Rato, speech at the Foro de Cadiz - "How Europe can Help the Global Economy while Helping Itself," 21 November 2006, at

http://www.imf.org/external/np/speeches/2006/112106.htm

34. Joseph Stiglitz, Making Globalization Work, The Next Steps to Global Justice , London, Penguin Books, 2006, page 259.

35. Joseph Stiglitz, Making Globalization Work , ibid , page 265.

36. Clyde Prestowitz, Three Billion New Capitalists - The Great Shift of Wealth and Power to the East , New York, Basic Books, 2005, page 187.

37. Niall Ferguson, "Reasons to Worry," New York Times Magazine ,11 June 2006, at http://select.nytimes.com/search/restricted/article?res=F00D13FC3F550C728DDDAF0894DE404482

38. Rodrigo de Rato, 21 November 2006, op cit.

39. Journal of Policy Modeling , Volume 28, Issue 6, "Twin Deficits: Growth and Stability of the U.S. Economy," September 2006, at http://www.sciencedirect.com/science?_ob=PublicationURL&_tockey=%23TOC%235858%232006%23999719993%23630455%23FLA%23&_cdi=5858&_pubType=J&view=c&_auth=y&_acct=C000050221&_version=1&_urlVersion=0&_userid=10&md5=432047cac51e9ccbf2e8708e5badbb34

40. Richard Cooper, "Living with global imbalances: A contrarian view" in Journal of Policy Modeling , ibid .

41. Andrew Rose, "A Stable International Monetary System Emerges: Bretton Woods Reversed," Centre for Economic Policy Research, C.E.P.R. Discussion Paper 5854, September 2006, at http://www.cepr.org/pubs/new-dps/dplist.asp?dpno=5854.asp

42. Robert G. Williams, The Money Changers , a guided tour through the global currency markets , London and New York, Zed Books, 2006, page 245. This is an easy-to-read, conversational style book about the currency markets.

43. Joseph Stiglitz, Making Globalization Work , op cit , page 249.

44. Joseph Stiglitz, Making Globalization Work , op cit , page 247.

45. ChinaToday.com, "Monthly trade surplus hits new high," at http://www.chinatoday.com/trade/a.htm

46. U.S. Treasury Dept., U.S. International Reserve position, 24 November 2006, at http://www.treas.gov/press/releases/20061241425214517.htm

47. U.S. Dept. of Commerce, U.S. International Trade in Goods and Services, September 2006, at http://bea.gov/bea/newsrelarchive/2006/trad0906_fax.pdf

48. Joseph Stiglitz, Making Globalization Work , op cit , page 251.

49. See, e.g., Olivier Jeanne and Romain Ranciere, "The Optimal Level of International Reserves for Emerging Market Countries: Formulas and Applications," IMF Working paper 06/229, October 2006, at http://www.imf.org/external/pubs/ft/wp/2006/wp06229.pdf

50. Elias Papaioannou and Richard Portes, "Optimal Currency Shares in International Reserves: The Impact of the Euro and the Prospects for the Dollar," CEPR Discussion Paper, No 5734, at http://www.cepr.org/pubs/new-dps/dplist.asp?dpno=5734.asp

51. Eduardo Yeyati, "The Cost of Reserves," Universidad Torcuato Di Tella Working Paper 10, July 2006, at http://www.utdt.edu/Upload/CIF_wp/wpcif-102006.pdf

52. Andrea Terzi, "International Financial Instability in a World of Currencies Hierarchy," Universita Cattolica del Sacro Cuore, Milano, October 2006, page 4, at http://www.unicatt.it/Istituti/EconomiaFinanza/Quaderni/641005.pdf

53. Angola Press, "COMESA summit a great success: Secretary General," 23 November 2006, at http://www.angolapress-angop.ao/noticia-e.asp?ID=489792 .

54. Charalambos Tsangarides and Mahvash Saeed Qureshi, "What is Fuzzy About Clustering in West Africa?," IMF Working Paper 06/90, March 2006, at http://www.imf.org/external/pubs/ft/wp/2006/wp0690.pdf

55. Marie-Louise Gumuchian, "Rwanda, Burundi join East Africa Community," Washington Post , from Reuters, 30 November 2006, at http://www.washingtonpost.com/wp-dyn/content/article/2006/11/30/AR2006113000296.html

56. John Williamson, "Choosing Monetary Arrangements for the 21st Century: problems of a small economy," Peterson Institute of International Economics, Policy Brief PBO6-8, November 2006, at http://www.iie.com/publications/pb/pb06-8.pdf

57. Janine Rossouw, "An Analysis of Macro-Economic Convergence in SADC ," South African Journal of Economics , September 2006, page 385 at http://www.blackwell-synergy.com/doi/abs/10.1111/j.1813-6982.2006.00080.x

58. Carter Dougherty, "In Eastern Europe, a Switch to the Euro Comes Slowly," New York Times, 6 December 2006, page C2, at http://www.nytimes.com/2006/12/06/business/worldbusiness/06euro.html . See also the December 2006 "Convergence Report of the European Central Bank" at http://www.ecb.int/pub/pdf/conrep/cr200612en.pdf .

59. Ales Bulir and Jaromir Hurnik, "The Maastricht Inflation Criterion: How unpleasant is Purgatory?" IMF Working Paper 06/154, June, 2006, at http://www.imf.org/external/pubs/ft/wp/2006/wp06154.pdf . See also Anthony Annett, "Enforcement and the Stability and Growth Pact: How Fiscal Policy Did and Did Not Change Under Europe's Fiscal Framework, Washington IMF Working Paper 06/116, May, 2006, at http://www.imf.org/external/pubs/ft/wp/2006/wp06116.pdf .

60. Luca Di Leo and Joellen Perry, "Italy Credit Downgrade May Undermine Euro Zone," Wall Street Journal , 20 October 2006, at http://users1.wsj.com/lmda/do/checkLogin?mg=wsj-users1&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB116129176975298154.html%3Fmod%3Dtodays_us_page_one

61. See the work of the National Euro Changeover Committee at http://mfin.gov.mt/page.aspx?site=NECC&page=default , and the "Euro adoption" section of the website of the Central Bank of Malta at http://www.centralbankmalta.com/site/euroadoption.html .

62. Marco Ercolani and Jayasri Dutta, "The Euro-changeover and Euro-inflation: Evidence from Eurostat's HICP," University of Birmingham Discussion Paper, February 2006, at ftp://ftp.bham.ac.uk/pub/RePEc/pdf/ErcolaniDutta0603.pdf

63. See the work of the Cyprus National Advisory Committee on the euro changeover, at http://www.euro.cy/euro/euro.nsf/dmlindex_en/dmlindex_en?opendocument .

64. Francesco Daveri and C. Jona-Lasinio, "Italy's decline: getting the facts right," Parma University Working Papers EP01, January 2006, at http://swrwebeco.econ.unipr.it/RePEc/pdf/I_2006-01.pdf

65. European Commission, "Flash EB Series #183, Introduction of the euro in the new Member States, Wave 3," April 2006, at http://ec.europa.eu/public_opinion/flash/fl183_en.pdf

66. Boris Groendahl and Stella Dawson, Reuters, "ECB's Liebscher says euro referenda out of question," Times of Malta , 27 November 2006, at http://www.timesofmalta.com/core/article.php?id=244434

67. Speech by Krzysztof Rybinski, Deputy President of National Bank of Poland, "Single euro payments area from the point of view of the National Bank of Poland," Warsaw, 10 October 2006, at http://www.bis.org/review/r061018d.pdf

68. Charlie McGreevy, "Time to Deliver on SEPA," speech delivered at the SEPA Congress in Frankfurt, 13 November 2006, at http://europa.eu/rapid/pressReleasesAction.do?reference=SPEECH/06/679&format=HTML&aged=0&language=EN&guiLanguage=en

69. Commission of the European Communities, "The EU Economy 2006 Review - Adjustment Dynamics in the Euro Area, Experiences and Challenges," 22 November 2006, at http://ec.europa.eu/economy_finance/publications/european_economy/2006/ee606_en.pdf

70. Reuters, "Oman won't join Gulf monetary union in 2010," Khaleej Times online, 9 December 2006, at http://www.khaleejtimes.com/DisplayArticleNew.asp?xfile=data/business/2006/December/business_December272.xml&section=business

71. International Monetary Fund Press Release, No. 06/240, 4 November 2006, at http://www.imf.org/external/np/sec/pr/2006/pr06240.htm

72. Julian Berengaut and Katrin Elborgh-Woytek, "Beauty Queens and Wallflowers - Currency Unions in the Middle East and Central Asia," IMF Working paper 06/226, October 2006, at http://www.imf.org/external/pubs/ft/wp/2006/wp06226.pdf

73. Hasan Sahin, "MENA countries as optimal currency areas: Reality or dream?" Journal of Policy Modeling , July 2006, at http://www.sciencedirect.com/science/article/B6V82-4K674S7-5/2/d54fea6e2d0ea269aa1b90bf0a852289

74. "Economist warns of slowdown of SE Asian economies as interest rates rise," The People's Daily , 9 September 2006, online, at http://english.people.com.cn/200509/09/eng20050909_207506.html

75. Eiji Ogawa and Kentaro Kawasaki, "Adopting a common currency basket arrangement into the 'ASEAN plus three' ," RIETI Discussion Paper 06-E-028, June 2006, at http://www.rieti.go.jp/jp/publications/dp/06e028.pdf and by the same authors, "What Should the Weights of the Three Major Currencies be in a Common Currency Basket in East Asia?," Asian Economic Journal , March 2006, page 75, at http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-8381.2006.00225.x?prevSearch = and by Eiji Ogawa and Junko Shimizu, "Stabilization of effective exchange rates under common currency basket systems," Journal of the Japanese and International Economies , December 2006, at http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6WMC-4M3RP35-1&_coverDate=12%2F31%2F2006&_alid=500166248&_rdoc=1&_fmt=&_orig=search&_qd=1&_cdi=6931&_sort=d&view=c&_acct=C000050221&_version=1&_urlVersion=0&_userid=10&md5=9f6b2080156a9994d776561a49c36aa4

76. Hans Genberg, "Exchange-Rate Arrangements and Financial Integration in East Asia: On a Collision Course?" May 2006, at http://www.bankofgreece.gr/publications/pdf/Paper200641.pdf as presented at the 24-25 February 2006 conference in Vienna organized by George Tavlas of the Bank of Greece and Eduard Hochreiter of the Oesterreichische Nationalbank.

77. Bill Savadove, "Yuan reaches unofficial parity with HK dollar," South China Morning Post , Hong Kong, 28 November 2006, page A4.

78. Xinpeng Xu, "A currency union for Hong Kong and Mainland China?" Journal of International Money and Finance , October 2006, at http://www.sciencedirect.com/science/article/B6V9S-4KKFP1B-1/2/f983cbe7ed0af3e4987865a387c189cd

79. Tim Dick, "Push for Common Anzac Currency," The Sydney Morning Herald , 5 December 2006, at http://www.stuff.co.nz/stuff/0,2106,3888577a13,00.html

80. Christopher Browne and David Orsmond, "Pacific Island Countries -- Possible Common Currency Arrangement," IMF Working paper 06/234 at http://www.imf.org/external/pubs/ft/wp/2006/wp06234.pdf

81. Brown and Orsmond, ibid , page 14.

82. Eric Helleiner, Towards North American Monetary Union? The Politics and History of Canada's Exchange Rate Regime , Montreal, McGill-Queen's University Press, 2006, 352 pages.

83. Sven Arndt, "Regional Currency Arrangements in North America," May 2006, at http://www.bankofgreece.gr/publications/pdf/Paper200640.pdf and as presented at the 24-25 February 2006 conference in Vienna organized by George Tavlas of the Bank of Greece and Eduard Hochreiter of the Oesterreichische Nationalbank.

84. Theodore di Stefano, "Monetary Unions: Are We On Our Way?" E-Commerce Times ," 2 June 2006, at http://www.ecommercetimes.com/story/50828.html

85. European Commission, "Monetary and exchange rate agreements between the European Community and Third Countries," Economic Paper 255. September 2006, at http://ec.europa.eu/economy_finance/publications/economic_papers/2006/ecp255en.pdf

86. Associated Press, "South American Summit dreams of uniting continent's governments, people," International Herald Tribune , 8 December 2006, at http://www.iht.com/articles/ap/2006/12/09/america/LA_GEN_Bolivia_Summit.php

87. Latin Business Chronicle.com , "A common currency for Mercosur?" 5 September 2006, at http://www.latinbusinesschronicle.com/app/login_info.aspx?r=%2fapp%2farticle.aspx%3fid%3d350&msg=no_login

88. European Commission, "Monetary and exchange rate agreements between the European Community and Third Countries," op cit . page 39.

89. Helen Murphy, "Ecuador Bonds may Fall; Exit polls show Correa Winning Election," Bloomberg , 27 November 2006 at http://www.bloomberg.com/apps/news?pid=20670001&refer=news&sid=a31B5.qZxWgo

90. Manuel Hinds, Playing Monopoly with the Devil: Developing World Needs to Adopt the Dollar as its Currency , New Haven, Yale University Press, 2006.

91. Jiro Honda and Liliana Schumacher, "Adopting Full Dollarization in Postconflict Economies: Would the Gains Compensate for the Losses in Liberia?" IMF working Paper 06/82, April 2006, at http://www.imf.org/external/pubs/ft/wp/2006/wp0682.pdf

92. Matthew Lynn, "Time to liberate Eastern Europe from the euro," Bloomberg News , 7 May 2006, at http://www.thebusinessonline.com/Stories.aspx?StoryId=B49CD036-87ED-4620-86E4-0AD840330A8E&page=0

93. Ambrose Evans-Pritchard, "Why the breakup of faltering euro could be the way ahead," Daily Telegraph , 16 September 2006, at http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/09/18/ccview18.xml

94. Howard R. Vane and Chris Mulhearn, "Interview with Robert Mundell," Journal of Economic Perspectives , Vol. 20, No. 4, Fall 2006, page 99, at http://www.atypon-link.com/doi/abs/10.1257/jep.20.4.89 .

95. Joseph Stiglitz, Making Globalization Work , op cit , page 4.

96. Robert Wade, "The Case for a Global Currency," International Herald Tribune , 4 August 2006, at http://www.iht.com/articles/2006/08/03/opinion/edwade.php

97. Joseph Stiglitz, "How to Fix the Global Economy," The New York Times, Op-Ed, 3 October 2006, page 27, at http://select.nytimes.com/search/restricted/article?res=F20E1FFA3F540C708CDDA90994DE404482

98. Andrea Terzi, "International Financial Instability in a World of Currencies Hierarchy," Universita Cattolica del Sacro Cuore, Milano, October 2006, page 20, at http://www.unicatt.it/Istituti/EconomiaFinanza/Quaderni/641005.pdf

99. Michael Bordo and Harold James, "One World Money, Then and Now," Cambridge, February, 2006, National Bureau of Economic Research, at http://www.nber.org/papers/w12189 and also presented at the 24-25 February 2006 conference in Vienna.

100. Sergio Schmukler, "Discussion: Exchange Rate Arrangements and Disarrangements" Prospects for a World Currency," March 2006, at page 43 of Oesterreichische Nationalbank Working Paper 127, http://www.oenb.at/de/img/wp127_tcm14-42690.pdf

101. Barry Eichengreen and Raul Razo-Garcia, "The International Monetary System in the Last and Next 20 Years," Economic Policy , July 2006, pp 393-442 at page 416, at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=916598

102. Philip Arestis, Santonu Basu, and Sushanta Mallick, "Financial Globalization: the need for a single currency and global central bank," Journal of Post Keynesian Economics , Spring 2005, pp 507-531, at page 508, at http://mesharpe.metapress.com/(pkospvf3wjgs55qbdbcsnhra)/app/home/contribution.asp?backto=issue,11,13;journal,7,17;linkingpublicationresults,1:109348,1

103. ibid, page 522.

104. ibid , page 523.

105. ibid , page 526-27.

106. ibid, page 529.

107. Barry Carin and Gordon Smith, "Making Change Happen at the Global Level," Chapter 1 in John English, editor, et al., Reforming from the Top - a Leaders' 20 Summit , New York, United Nations University Press, October 2005, at http://www.globalcentres.org/html/pdf/G20%20pdf/Making%20Change%20Happen%20at%20the%20Global%20Level.pdf .

108. Joseph Stiglitz, Making Globalization Work , op cit , page 4.

109. Joseph Stiglitz, Making Globalization Work , op cit , page 21.

110. Charalambos G. Tsangarides, Pierre Ewenczyk and Michal Hulej, "Stylized Facts on Bilateral Trade and Currency Unions: Implications for Africa," IMF Working Paper No. 06/31, January 2006, at http://www.imf.org/external/pubs/ft/wp/2006/wp0631.pdf

111. Email from the authors to the article's authors, Charalambos G. Tsangarides, Pierre Ewenczyk and Michal Hulej, on 28 November 2006.

112. Charalambos Tsangarides and Yasser Abdih, "FEER for the CFA Franc," IMF Working Paper 06/236, October 2006, at http://www.imf.org/external/pubs/ft/wp/2006/wp06236.pdf

113. Warren Leary, "NASA Plans Permanent Moon Base," The New York Times , 5 December 2006, page 1, at http://www.nytimes.com/2006/12/05/science/space/05nasa.html?_r=1&oref=slogin

114. Seth Borenstein, "NASA: Moon Base Cost Won't Be Sky High," Associated Press in Forbes , online, at http://www.forbes.com/technology/ebusiness/feeds/ap/2006/12/09/ap3241901.html

115. Editorial, "Back to the Moon, Permanently," New York Times , 9 December 2006, at http://www.nytimes.com/2006/12/09/opinion/09sat2.html?_r=1&oref=slogin

116. "European Commission, "Flash Eurobarometer 175 - The euro, 4 years after the introduction of the banknotes and coins," Analytical report in November, 2005 by EOS Gallup Europe, at http://ec.europa.eu/public_opinion/flash/fl175_en.pdf

117. Carter Dougherty, "Portugal looks to heal exhausted economy," International Herald Tribune , 14 June 2006, at http://www.iht.com/articles/2006/06/13/business/portugal.php

118. Howard R. Vane and Chris Mulhearn, "Interview with Robert Mundell," Journal of Economic Perspectives , Vol 20, No. 4, Fall 2006, page 106. 89-110, at http://www.atypon-link.com/doi/abs/10.1257/jep.20.4.89 . The cited reference was to one of Paul Volcker's restatements of "A global economy requires a global currency" was in a 27 January 2000 speech, at http://www.trilateral.org/membship/membtxts/pv/000127.htm . He said, My sense is that if we are to have a truly globalized economy, with free movement of goods, services and capital, a world currency makes sense."

119. Richard Cooper, "Proposal for a Common Currency among Rich Democracies," page 5, presented at the “Regional and International

Currency Arrangements” conference, held in Vienna on 24-25 February 2006. It was jointly organized by George Tavlas (Bank of Greece) and Eduard Hochreiter (Oesterreichische Nationalbank). The article appears at http://www.oenb.at/en/presse_pub/research/020_workingpapers/wp2006/working_paper_127.jsp#tcm:16-42750

120. ibid , page 6.

121. Barry Eichengreen, "On the Sequencing of regional integration: General considerations and an application to Asia," The North American Journal of Economics and Finance , December 2006, at http://www.sciencedirect.com/science/article/B6W5T-4KKFPHJ-1/2/edbf1512e0a42721857624af20a9874c

122. Anne Kester, "IMF Data Standards Initiatives - A Consultative Approach to Enhancing Global Data Transparency, IMF Working Paper 06/102, April 2006, at http://www.imf.org/external/pubs/ft/wp/2006/wp06102.pdf

123. Robert Wade, op cit. .

124. Frederic Rochelle, "The EU needs to step up to reform the international financial system," NewEuropeans Magazine, 29 September 2006, at http://www.newropeans-magazine.org/index.php?option=com_content&task=view&id=4649&Itemid=110

125. Nilolai Hovanov, James Kolari, and Mikhail Sokolov, "Synthetic Money," International Review of Economics and Finance , June 2006, at http://www.fma.org/NewOrleans/Papers/7101144.pdf

126. Joseph Stiglitz, Making Globalization Work , op cit, page 260.

127. Joseph Stiglitz, Making Globalization Work , op cit , page 261.

128. Joseph Stiglitz, Making Globalization Work , op cit , page 263.

129. Joseph Stiglitz, Making Globalization Work , op cit , page 263.

130. Joseph Stiglitz, Making Globalization Work , op cit , page 269.

131. Clyde Prestowitz, Three Billion New Capitalists - The Great Shift of Wealth and Power to the East , New York, Basic Books, 2005, page 257.

132. Richard Cooper, op cit, and Michael Bordo and Harold James, op cit.

133. John Williamson, "Choosing Monetary Arrangements for the 21st Century: problems of a small economy," Peterson Institute of International Economics, Policy Brief PBO6-8, November 2006, at http://www.iie.com/publications/pb/pb06-8.pdf

134. International Monetary Fund. "The Managing Director's Report on the Fund's Medium-Term Strategy," 15 September 2005, at http://www.imf.org/external/np/omd/2005/eng/091505.pdf .

135. International Monetary Fund, "Report on Implementing the Fund's Medium-Term Strategy," 5 April 2006, at http://www.imf.org/external/np/pp/eng/2006/040506.pdf

136. International Monetary Fund, "Statement by Rodrigo de Rato, Managing Director of the International Monetary Fund, on the Work Program of the Executive Board," 30 November 2006, at http://www.imf.org/external/np/sec/pr/2006/pr06267.htm

137. Letter from Kathleen White, External Affairs, IMF, 12 September 2006 to the author, as posted at http://www.singleglobalcurrency.org/latest_news.html

138. Dennis Leech and Robert Leech, "Voting Power Implications of a Unified European Representation at the IMF," Warwick Economics Research Paper Series, No. 720, January, 2005, at http://www2.warwick.ac.uk/fac/soc/economics/research/papers/twerp720.pdf

139. Tahsin Saadi-Sedik and Martin Petri, " To Smooth or Not to Smooth - The Impact of Grants and Remittances on the Equilibrium Real Exchange Rate in Jordan," IMF Working paper 06/257, at http://www.imf.org/external/pubs/ft/wp/2006/wp06257.pdf

140. International Monetary Fund, "Statement by IMF Staff Mission to Mali, Press Release No. 06/260, 21 November 2006, at http://www.imf.org/external/np/sec/pr/2006/pr06260.htm .

141. Celia Dugger, "Peace Prize to Pioneer of Loans To Poor No Bank Would Touch," New York Times , 14 October 2006, at http://www.nytimes.com/2006/10/14/world/asia/14nobel.html?ex=1318478400&en=8d70ad89b584ca06&ei=5088&partner=rssnyt&emc=rss

142. Howard Vane and Chris Mulhearn, "An Interview with Robert Mundell," op cit ., page 109.

143. Paul Jenkins, Senior Deputy Governor of the Bank of Canada, "What monetary policy can and cannot do," Presentation to the Canadian Institute of Actuaries, Ottowa, 29 June 2006, at http://www.bis.org/review/r060707c.pdf

 

 

Introduction to 2006, original edition.

1. Thomas Paine, Common Sense, Rights of Man, and other essential writings of Thomas Paine , New York, NY: New American Library, 2003, p. 3, Introduction.

 

2. The fifteen currencies belong to: Argentina, Australia, Canada, Eastern Caribbean Monetary Union, Eritrea, European Monetary Union, Gambia, Guyana, Malta, New Zealand, Singapore, South Africa, Sri Lanka, United States, and Zimbabwe. Sources: http://en.wikipedia.org/wiki/Cents and

www.google.com for (cents coins currency). The legitimacy of Wikipedia as a source is confirmed by Thomas L. Friedman in The World is Flat , New York, NY: Farrar Straus and Giroux, 2005, who said at page 94 that he used this source regularly. On the other hand, Wikipedia is not always reliable. The current Wikipedia entry for "Global Currency," as of 15 February 2006, is an example of how public awareness of the Single Global Currency needs to be changed. The entry reads: "A global currency, in the form of a modern currency produced and supported by a central bank, like euro and dollar, will never be made. There are many fundamental problems that simply cannot be fixed. Both political problems and economicy[sic]-theoretical problems." At http://en.wikipedia.org/wiki/Global_currency.

  As Wikipedia is the peoples' "free encyclopedia," which can be edited by its viewers, it will be interesting to see how long it takes for that entry to be improved.

 

3. The Rosetta Stone was discovered in 1799 in El Rashid (Rosetta), Egypt by soldiers in Napoleon's army while digging to construct an addition to a fort. Written approximately in 19 B.C., the stone contains a decree to priests in three languages: Egyptian hieroglyphs, a local script called demotic, and Greek. This discovery enabled the first translations of the heretofore undecipherable hieroglyphs. The Stone was donated to the British Museum by King George III, whose common sense in this regard would likely have impressed even Thomas Paine. See http://www.thebritishmuseum.ac.uk/compass/ixbin/goto?id=OBJ67

The Arthurian reference is to the legend that Arthur became King of England after pulling a sword from a stone. See http://www.kingarthursknights.com/faq/swordstone.asp.

 

4. The value of the euro was established in the Spring 1998 as equivalent to a precise quantity of each of the currencies of the twelve participating countries, e.g., equal to 40.3399 Belgian francs. See list of currencies and their values at http://www.ecb.int/bc/intro/html/index.en.html. On the first trading day of the euro, Friday, 1 January 1999, those 40.3399 Belgian francs, and 1.95582 German deutschmarks, etc., were all equal to 1.16692 US dollars and equivalents in other currencies. From that point forward, all foreign exchange trading with the twelve legacy currencies stopped and trading began with the euro. On Sunday afternoon (GMT), 4 January, with trading beginning in New Zealand on Monday morning local time, 5 January, the euro dropped to 1.1760. See FX Converter at http://www.oanda.com/convert/classic.

 

5. The original quote was in George Bernard Shaw's play, Back to Methuselah , Act I, Selected Plays with Prefaces , vol. 2, p. 7 (1949). The serpent says to Eve, "You see things; and you say 'Why?' But I dream things that never were; and I say 'Why not?' "
  President John F. Kennedy quoted these words in his address to the Irish Parliament, Dublin, 28 June 1963. Public Papers of the Presidents of the United States: John F. Kennedy , 1963, p. 537.
  Senator Robert F. Kennedy used a similar quotation as a theme of his 1968 campaign for the presidential nomination: “Some men see things as they are and say, why; I dream things that never were and say, why not.” Senator Edward M. Kennedy quoted these words of Robert Kennedy in his eulogy for his brother in 1968. ( The New York Times , 9 June 1968, p. 56; Source: www.bartleby.com Respectfully Quoted: A Dictionary of Quotations , 1989.)

 

6. Astonishingly, the 2005, 362-page, first edition of Economics for Dummies , does not mention "balance of payments," nor "Bretton Woods," nor the euro. It makes only one mention of "exchange rates" on page 330 with the note that countries can manipulate the exchange rate of their own currencies to make their exports cheaper, which is true. Sean Masaki Flynn. Economics for Dummies. Hoboken, NJ: Wiley Publishing, 2005.

 

7. The abbreviation "3-G s " here will save space and perhaps conjure an image of humankind accelerating into a new economic world, freed of the dynamics previously thought to be as permanent as gravity. Incidentally, three G s (as in: three times the force of gravity) are within the boundaries of space flight where astronauts endure gravitational pressures of approximately 3 G s , or three times the force of gravity, at launch, but face approximately 6 G s upon re-entry.

 

8. The term "Eurozone" is used in this book as shorthand for the countries of the European Monetary Union, which includes all of the European Union countries except Denmark, Sweden, and the United Kingdom of Britain and Northern Ireland.

 

9. The estimated cost of the Apollo moon voyages in the 1960s was reportedly $25.4 billion in 1960s US dollars. See BBC's "Apollo Missions: The Conclusion," at http://www.bbc.co.uk/dna/h2g2/A830774. The Economic History Association's website EH.net has an excellent utility to determine the value of US dollars between any two years between 1704 and 2004. Calculations can be made using the Consumer Price Index (CPI) or GDP per capita or other indices. Using the CPI, the $25.4 billion (arbitrarily using the year 1969), was equivalent to $131.0 billion in 2004. Using the GDP per capita index, it would have been equivalent to $208.9 billion. See http://www.eh.net/hmit/compare/.

Chapter 1. The Expensive, Complex, and Hazardous Multicurrency Foreign Exchange World

1. The rhythm for the title of this chapter may have come from reading aloud Judith Viorst's Alexander and the Terrible, Horrible, No Good, Very Bad Day , to granddaughters Madeline and Cameron. New York, NY: Aladdin Paperbacks, Simon & Shuster, 1972.

 

2. The count of 147 comes from the listing on the Single Global Currency

Association website, www.singleglobalcurrency.org/currencies_by_country.html. The calculations start with the number 184 which was the number of full nation-state members of the United Nations in 1994. Then are subtracted the countries who are fully "ized" (Dollarized(2) where the US Dollar is legal tender, and Euroized(4) where the Euro is legal tender) and are subtracted the countries which belonged to monetary unions as of that year. Then the new U.N. members are added and further subtractions are made for izing or formation of monetary unions. Where a monetary union includes two mutually legal tender currencies, the count of currencies is one, as is the case with the Singapore/Brunei Darussalam monetary union.

  As with many count-em-ups, a lot depends upon definition, and the choice of the 191 U.N. members is a stake-in-the-ground starting point. There are actually many more currencies in the world. In addition to the "complementary" or "private" currencies which are discussed later, there are a number of territories or countries with ambiguous political status which have convertible currencies, such as Netherlands Antilles, Aruba, Cayman Islands, Falkland Islands, Hong Kong, Macao, and Taiwan.

 

3. The term "currency area" became best known with the 1961 publication of Robert Mundell's "A Theory of Optimum Currency Areas," American Economic Review , May 1961, pp. 657-65. The article is also contained in Robert Mundell's textbook, International Economics , as Chapter 12, pp. 177-86, and online at http://www.columbia.edu/~ram15/ie/ie-12.html. He originally defined "currency area" as a "domain within which exchange rates are fixed," at p. 662.

 

4. This $2.5 trillion estimate is calculated in two ways. First, we take the $1.9 trillion baseline for April, 2004, from the Bank for International Settlements report, and multiply by the conservatively estimated 32 percent increase in trading from April, 2004 to 21 December, 2005. See Bank for International Settlements, 75th Annual Report , Chapter 6, "Foreign Exchange Markets," issued 27 June 2005, pp. 77-87, at http://www.bis.org/publ/arpdf/ar2005e5.htm. That report, in turn, references the "Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity in April 2004--Preliminary Global Results," B.I.S., 28 September 2004, at http://www.bis.org/press/p040928.htm. The final results were published in March, 2005, at http://www.bis.org/publ/rpfx05.htm.

  Another method would be to take the reported daily volumes from London, New York, and Singapore on October 2005, of $.73 trillion, $.37 trillion and $.20 trillion respectively, and divide by their respective shares of the foreign exchange market, as taken from the earlier Triennial Survey, above, of 31 percent, 19 percent and 5 percent, respectively. Those extrapolated worldwide volumes average to $2.4 trillion. The city totals are reported at http://www.bankofengland.co.uk/markets/forex/fxjsc/fxturnresults060123.pdf, and http://www.newyorkfed.org/fxc/2006/fxc012306.pdf and http://www.sfemc.org/statistics/fxvol23jan2006.pdf, respectively.

 

5. These totals for the non-traditional, or "derivatives" or "over the counter" are not included in the above totals as their numbers are less reliable. The numbers in the text are extrapolated from the London, New York, and Singapore Reports, from endnote 4, above, but the 2005 B.I.S. Triennial report states that the worldwide daily trading in these instruments was $1.2 trillion, or almost as large as for the traditional instruments.

 

6. "Babson Economist Works to Reduce World Poverty," Interview with Babson Prof. Maria Minniti, Boston Globe , 6 November 2006, p. A31.

 

7. Senator Everett Dirksen was a US Senator from Illinois and he used to tell a story to the same effect: " An old man once taught me what a million is. He said, look at your watch, and watch the second hand. You can see it every second, every minute, every day, every night, every week, every month, every year--and in three years it would go around 1,000,000 times. " from http://en.thinkexist.com/quotes/everett_dirksen/. However, it would actually take a little less than two years as there are 525,600 minutes in a year.

 

8. This estimate of $42.2 trillion was calculated using the World GDP number from the World Bank data for 2004 of $40.89 trillion, and the World Bank's estimate in November, 2005 of a 3.2 percent growth rate for 2005. See "Prospects for the Global Economy," 16 November 2005, at http://web.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTDECPROSPECTS/EXTGBLPROSPECTS/0,,contentMDK:20665612~menuPK:612510~p.PK:64218950~piPK:64218883~theSitePK:612501,00.html

 

9. New York Stock Exchange, online statistics at http://www.nyse.com/Frameset.html?displayP.=/marketinfo/1022221393893.html

 

10. "FX Volume Survey Results," Foreign Exchange Committee of the Federal Reserve Bank of New York, http://www.newyorkfed.org/fxc/volumesurvey/

 

11. "A Little Perspective on $87 billion," Crunchweb.net , Alexandria, Virginia, at http://www.crunchweb.net/87billion/

 

12. "Apollo 8," National Space Data Center, National Aeronautics and Space Administration (NASA), at http://nssdc.gsfc.nasa.gov/planetary/lunar/apollo8info.html.

 

13. This concept that foreign exchange represents the bartering of different goods, i.e., currencies, is, like some other ideas, an idea that I thought I developed on my own. As with most such ideas, there indeed was at least someone else. In this case, Richard Cooper had this to say, "Yet the exchange rate is technically not anchored by anything in the long run, being the barter price between two nominal variables (as Kareken and Wallace pointed out two decades ago)," at Richard Cooper, "Toward A Common Currency?" June 2000, p. 18, presented at the conference on the Future of Monetary Policy and Banking, organized by the IMF and the World Bank, at http://www.worldbank.org/research/interest/confs/upcoming/papersjuly11/cooper.pdf.

 

14. For an impassioned statement of the value of money, see "Francisco's Money Speech" in Ayn Rand's Atlas Shrugged , 1957, at http://capmag.com/article.asp?ID=1826. Francisco d'Anconia said, in part, "To trade by means of money is the code of the men of good will. Money rests on the axiom that every man is the owner of his mind and his effort. Money allows no power to prescribe the value of your effort except the voluntary choice of the man who is willing to trade you his effort in return. Money permits you to obtain for your goods and your labor that which they are worth to the men who buy them, but no more. Money permits no deals except those to mutual benefit by the unforced judgment of the traders."

 

15. World Trade Organization, World Trade Report , 2005, p. 6, Table 3, "World Merchandise Trade by Major Region," of Chapter 1, "Recent and Selected Medium-Term Developments" at http://www.wto.org/english/res_e/booksp_e/anrep_e/world_trade_report05_e.pdf

 

16. "Total GDP," 15 July 2005, World Bank Data and Statistics, at http://siteresources.worldbank.org/DATASTATISTICS/Resources/GDP.pdf

 

17. Dominick Salvatore, "The Euro-Dollar Exchange Rate Defies Prediction," Journal of Policy Modeling , June 2005, pp. 455-64, at http://www.sciencedirect.com/science/article/B6V82-4G5YSNX-2/2/8bd46e0652074df47caa9c04052a1e2d

18. During my research for this book, I found many such puzzles and may have discovered a new one which can be called the "currency pair sum puzzle." However, as with most ideas, it's likely that someone has already identified this puzzle and solved it, or deemed it not a puzzle at all. I wondered about the sum of the two currency values in a traded pair, e.g., the euro/US dollar on 4 January 1999 of .8422/1.1874 summing to be 2.0296, and the significance of the changes in that sum over time. Looking at the daily sum of those pairs in 1999, the highest value for the sum occurred that first day of trading of the euro and it was also the high for the year for the euro (low for the US dollar). The sum never dropped below 2.0000, which point was reached on the same day as the euro low for the year on 3 December at $.9984, and on other days as well. On 30 December 2004, when the euro hit a high of $1.35, the sum was 2.0924.

To what extent should this sum be a "constant sum game," analogous to zero sum games? Readers who have comments on this puzzle, please EMAIL them to me, Morrison Bonpasse. Better yet, and consistent with the general request in this book to economists, please devote whatever energy you might spend on the above and idly contemplated "puzzle" to the far more important issues of the Single Global Currency.

 

19. Sarah Perry, Director of Visa's Strategic Investment Program, in Efinance Insider , Issue 3, 17 April 2001. The Single Global Currency Association followed up with a 5 August 2005 email to Ms. Perry about the mutual interest in a Single Global Currency.

 

20. Foreign Exchange Committee of the Federal Reserve Bank of New York, Annual Report , 2005, for October 2004 at http://www.newyorkfed.org/FXC/annualreports/fxcar04.pdf

 

21. Mark Snyder, "New Opportunities and Risks in Foreign Exchange: The Role of the Foreign Exchange Committee," speech presented at the Profit & Loss Forex Network Conference, 20 September 2005, Chicago, at

http://www.newyorkfed.org/fxc/2005/fxc051117.pdf .

 

22. The Foreign Exchange Joint Standing Committee, "Results of the Semi-Annual FX Turnover Survey in October 2005," 23 January 2006, at

http://www.bankofengland.co.uk/markets/forex/fxjsc/fxturnresults050725.pdf .

 

23. Andrew Krieger, with Edward Claflin, The Money Bazaar , New York, NY: Times Books, 1992, at p. 21.

 

24. Foreign Exchange Committee of the Federal Reserve Bank of New York, FX Volume Survey, 2005, for April, 2005 at

http://www.newyorkfed.org/fxc/volumesurvey/explanatory_notes.html

 

25. "Derivative" as defined in Investopedia.com, "In finance,  a security whose price is dependent upon or derived from one or more underlying assets. The derivative itself is merely a contract between two or more parties. Its value is determined by the fluctuations of the underlying asset. The most common underlying assets include: stocks, bonds, commodities, currencies, interest rates and market indexes. Most derivatives are characterized by high leverage. 

  "Futures contracts, forward contracts, options and swaps are the most common types of derivatives. Because derivatives are just contracts, just about anything can be used as an underlying asset. There are even derivatives based on weather data, such as the amount of rain or the number of sunny days in a particular region.
  "Derivatives are generally used to hedge risk, but can also be used for speculative purposes. For example, a European investor purchasing shares of an American company on an American exchange (using American dollars to do so) would be exposed to exchange-rate risk while holding that stock. To hedge this risk, the investor could purchase currency futures to lock in a specified exchange rate for the future stock sale and currency conversion back into euros." At

http://www.investopedia.com/terms/d/derivative.asp

 

26. Alan V. Deardorff, "Deardorff's Glossary of International Economics" at http://www-personal.umich.edu/~alandear/glossary/

 

27. The Associated Press, via Asahi.com, "Dollar Rises Past 120 Yen in Tokyo," 2 December 2005, at http://www.asahi.com/english/Herald-asahi/TKY200512020245.html

 

28. Martin Fackler, "Yen at 32-month Low as Japan's Small Investors Look Abroad," The New York Times, 5 December 2005, p. C3.

 

29. Raul Lopez, "Currency Trading: Understanding the Basics of Currency Trading," at http://www.articlebiz.com/article/1626-1-currency-trading-understanding-the-basics-of-currency-trading/ and also at http://ezinearticles.com/?Currency-Trading:-Understanding-the-Basics-of-Currency-Trading&id=100502

 

30. For a view of the requisite personality characteristics of foreign exchange traders, see "Perceptions of Successful Traders by Foreign Exchange Professionals," by Thomas Oberlechner, in Journal of Behavioral Finance, Vol 5, No. 1, pp. 23-31, at http://www.leaonline.com/doi/pdf/10.1207/s15427579jpfm0501_3?cookieSet=1

 

31. Andrew Krieger, with Edward Claflin, The Money Bazaar , New York, NY: Times Books, a division of Random House, 1992, at p. 105.

 

32. Forex Capital Markets, at www.fxcm.com

 

33. Forex.com, a subsidiary of Gain Capital Group, www.forex.com.

 

34. Jack Egan, "Investing: Check the Currency Risk. Then Multiply by 100.," The New York Times , 19 June 2005, p. BU 8, at http://select.nytimes.com/gst/abstract.html?res=F40A17F83F5F0C7A8DD