Lorne, the way I see it, the world will have (over the next 5 to 10 years) three dominant currencies, the dollar, the Euro and a yen "backed" Asian currency equivalent to the Euro, call it the "Asio".
As I have mentioned in a prior post, with modern free flow of currencies, the best discipline on politician is the free flow itself and the market discipline. We may need few "systems and measures" to avoid organized "raids" in place, but with three "major" "de facto" international currencies, these raids will be more difficult.
There are still major problems to be solved when one creates a currency like the Euro, the most important one is that monetary policy (quantity of money and prevailing interest rates) is no longer under national control and may be in conflict with fiscal policies that are. That is one of the problems ailing the Euro right now. In time, these problems may be solved as well, but I know not "how".
Zeev |
