International Currencies Past, Present and Future: Two Views from Economic History

28 Pages Posted: 30 Mar 2015

See all articles by Barry Eichengreen

Barry Eichengreen

University of California, Berkeley; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Date Written: October 21, 2014

Abstract

This paper contrasts two views of international currency status: an “old view” in which network increasing returns are sufficiently strong that one currency dominates international markets at any point in time, versus a “new view” in which networks are open and several international currencies can coexist. It marshals historical evidence in favor of the “new view” and suggests that several national currencies, most plausibly the U.S. dollar and Chinese renminbi, are likely to share this international currency role in the not-too-distant future.

Suggested Citation

Eichengreen, Barry, International Currencies Past, Present and Future: Two Views from Economic History (October 21, 2014). Bank of Korea WP 2014-31, Available at SSRN: https://ssrn.com/abstract=2580651 or http://dx.doi.org/10.2139/ssrn.2580651

Barry Eichengreen (Contact Author)

University of California, Berkeley ( email )

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National Bureau of Economic Research (NBER) ( email )

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Centre for Economic Policy Research (CEPR) ( email )

London
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