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The Economics of International Monies

FRB of Atlanta Working Paper No. 2003-37

36 Pages Posted: 21 Jan 2004  

Gerald P. Dwyer

Clemson University; Australian National University (ANU) - Centre for Applied Macroeconomic Analysis (CAMA)

James R. Lothian

Gabelli School of Business, Fordham University; National Bureau of Economic Research (NBER)

Multiple version iconThere are 2 versions of this paper

Date Written: December 2003

Abstract

The economics of international monies is likely to be informative about the future of the euro. The authors summarize the history of international monies, from the gold solidus introduced in the fourth century to the present. They identify four common characteristics of these currencies: high unitary value; relatively low inflation rates; issuance by major economic and trading powers; and spontaneous, as opposed to planned, adoption. Recent theoretical literature supports the importance of the characteristics, while recent theories' common implication of multiple equilibria supports the importance of spontaneous adoption as developed by Menger and Hayek.

Keywords: Monetary history, international money, gold coinage

JEL Classification: E42, F33, N10

Suggested Citation

Dwyer, Gerald P. and Lothian, James R., The Economics of International Monies (December 2003). FRB of Atlanta Working Paper No. 2003-37. Available at SSRN: https://ssrn.com/abstract=487882 or http://dx.doi.org/10.2139/ssrn.487882

Gerald P. Dwyer (Contact Author)

Clemson University ( email )

Department of Economics
Clemson University
Clemson, SC 29634
United States

Australian National University (ANU) - Centre for Applied Macroeconomic Analysis (CAMA) ( email )

ANU College of Business and Economics
Canberra, Australian Capital Territory 0200
Australia

James R. Lothian

Gabelli School of Business, Fordham University ( email )

113 West 60th Street
New York, NY 10023
United States
212-636-6147 (Phone)
212-765-5573 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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