A longer version of this paper was presented at the Colloquium on Market Institutions and Economic Processes, Department of Economics, New York University, February 2008. I am obliged to Colloquium participants for their comments and to the referee's helpful remarks.
Currency Competition: A Hayekian Perspective on International Monetary Integration
Version of Record online: 10 AUG 2009
© 2009 The Ohio State University
Journal of Money, Credit and Banking
Volume 41, Issue 6, pages 1251–1263, September 2009
How to Cite
ENDRES, A. M. (2009), Currency Competition: A Hayekian Perspective on International Monetary Integration. Journal of Money, Credit and Banking, 41: 1251–1263. doi: 10.1111/j.1538-4616.2009.00255.x
- Issue online: 10 AUG 2009
- Version of Record online: 10 AUG 2009
- Received April 2, 2007; and accepted in revised form December 29, 2008.
- currency competition;
- currency internationalization and transnationalization;
- international financial order;
- monetary independence
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.