The Theoretical Foundations of an Extranational Composite Currency with Stable Purchasing Power, and their Implications
You say that you are doubtful, that my demonstration of the theoretical foundations of the ES does not convince you, that a currency unit capable of retaining its value in real terms is ‘contrary to the nature of things’. And then you add: ‘Everybody admits that there is a need for a reliable standard of measurement, and therefore for a currency with a purchasing power which, to quote The Economist, “will not flicker”. If such a thing were possible’, you argue, ‘the fact would be known and such a currency would already have been created; it does not exist because no currency has ever been capable of resisting the pressure of costs, the effects of supply and demand and the law of the market.’
KeywordsMoney Supply Foreign Currency Purchasing Power National Currency Currency Unit
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