Currency Competition: A Hayekian Perspective on International Monetary Integration

Author: ENDRES, ANTHONY M.

Source: Journal of Money, Credit and Banking, Volume 41, Number 6, September 2009 , pp. 1251-1263(13)

Buy & download fulltext article:

Price: $48.00 plus tax (Refund Policy)

Abstract:

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.

Keywords: B31; F02; F33; F36; currency competition; currency internationalization and transnationaliza; Hayek; international financial order; monetary independence

Document Type: Research article

DOI: http://dx.doi.org/10.1111/j.1538-4616.2009.00255.x

Affiliations: 1: Anthony M. Endres is an Associate Professor, Department of Economics, University of Auckland, Auckland, New Zealand ( )., Email: a.endres@auckland.ac.nz

Publication date: 2009-09-01