ACMETAL WORLD CURRENCY: March 2009

One World Currency

There is lot of discussion going on across the world on Single Global Currency or One World Currency. here in this blog we attempts to summarise World's thoughts on this.

“There are serious concerns about how the unwinding of global financial imbalances might affect the external financing conditions in which emerging market economies operate.” Louis Kasekende, African Development Bank

“It is only when we find ourselves in a real systemic crisis that we tend to move towards global solutions. This implies that the longer the global imbalances continue in a benign way, the more complacent we are likely to be.” Brian Kahn, South African Reserve Bank

“Perhaps the most important message of these earlier thinkers is that policymakers should try to avoid the build-up of dangerous economic imbalances in the first place.” William White, Bank for International Settlements

“The IMF should assume a central role in the resolution of global imbalances.” Ariel Buira, G-24 and Martín Abeles, CEFID-Argentina

“The need for the power to change the availability of liquidity at the global level has been increasingly evident throughout the post-Bretton Woods era as crisis after crisis has underscored the inadequacy of the current institutional framework.” Jane D’Arista, Financial Markets Center

Acmetal
Here is the proposed name for a universal world currency advocated by the president of Kazakhstan.

Kazakh President Nursultan Nazarbayev recently called for the introduction of a new global currency – the “acmetal” – to counter the financial crisis. Agence France-Press reported:

“In our view, we must create a single world currency under the aegis of the United Nations,” Mr. Nazarbayev said … “We must make a transition to an absolutely new global currency system based on legitimacy and, in view of all countries, one single monetary system.”

The A.P. said:

Nazarbayev’s proposal has raised eyebrows in some quarters, but the idea was embraced Wednesday by Robert Mundell, who won the Nobel prize for economics in 1999 for helping lay the theoretical groundwork for Europe’s single currency. “It would be a very good idea if the G-20 took that idea up in London,” Mundell said.

Acmetal, or Akmetal as some report it, is a portmanteau of the Greek word “acme” – the highest point or zenith – and “capital.” Boldly, President Nazarbayev suggested that the term capitalism might, in time, be replaced with “acmetalism.”