FEI -A Market-based Super Currency

25 Pages Posted: 3 Jan 2025

Date Written: December 24, 2024

Abstract

Ever since fiat currencies became the global norm, economists have debated how to achieve a stable international monetary unit. From John Maynard Keynes's Bancor (1942) to Mark Carney's more recent plan (2019), proposals have varied in design and governance but generally assume a government-led approach. This paper offers a different path: a privately issued global currency called the FEI, created by top-rated banks, backed by free-floating currencies, and bounded by a global cap to avoid excessive expansion. A private company would enforce transparent rules and consistent oversight. The objective is clear: to secure a stable monetary asset that fosters international trade and investment without relying solely on government sponsorship.

Keywords: JEL: G30, G35, B24, O16 Super currency, FEI, Exchange rates, Global money, Financial Markets

Suggested Citation

Mendes, António Marques, FEI -A Market-based Super Currency (December 24, 2024). Available at SSRN: https://ssrn.com/abstract=5069857 or http://dx.doi.org/10.2139/ssrn.5069857

António Marques Mendes (Contact Author)

Universidade de Coimbra ( email )

Av. Dias da Silva, 165
Coimbra, 3004-512
Portugal
+351-239790500 (Phone)

HOME PAGE: http://www.uc.pt/en/feuc

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