The Global Currency Area a Way to Constructively End the Era of Reserve Currency

摘要

An integrative currency area that is able to unify countries with different levels of labor productivity leads to a global currency area with only one currency. In such a scenario, the reserve money system would obviously disappear. This concept, linked with the correct view that money is a receivable for labor done, offers a new vision of globalization. This paper considers the necessary fundamentals of a global currency area and a post-exchange rate world economy. The study explores a new financial framework as well as the significance of the labor productivity ratio in macroeconomic control.