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Currency Competition: A Hayekian Perspective on International Monetary Integration
Author(s) -
ENDRES ANTHONY M.
Publication year - 2009
Publication title -
journal of money, credit and banking
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.763
H-Index - 108
eISSN - 1538-4616
pISSN - 0022-2879
DOI - 10.1111/j.1538-4616.2009.00255.x
Subject(s) - currency , economics , internationalization , competition (biology) , reserve currency , monetary economics , independence (probability theory) , devaluation , perspective (graphical) , international economics , keynesian economics , international trade , ecology , statistics , mathematics , artificial intelligence , computer science , biology
Currency internationalization is examined from the vantage point of Friedrich Hayek's contributions in the 1970s. Compared with received commentaries in which only an idealized case for private money is attributed to Hayek, this paper underscores other dimensions of Hayek's work on money and currency. Hayek's case for “choice in currency” draws on his theory of competition, anticipates competition between government suppliers of fiat money, accommodates many aspects of international monetary integration, and embodies a distinctive approach to monetary independence, choice of exchange rate regime, and the transnationalization of currency. Hayekian predictions are outlined for future developments in currency competition.