Future of Money 2020

Generated on 12th March 2010

Money as a unit of account is a hot topic as the US dollar is being questioned as the denomination of the world’s reserve currency. Robert Zoellick, President of the World Bank, recently said that the US must “brace itself” for the USD to be replaced in that role and, for other reasons, the UN Conference on Trade and Development has also called for the USD to be replaced with a new ‘global currency’ and not only as a unit of account. The question is with what? Should we adopt the Special Drawing Right that is used by the IMF or, if stability is a driver, should we not go back to gold as the price of oil in gold is much more stable than the price of oil in dollars.