INTERNATIONAL CURRENCIES - PART ONE: CONTEMPORARY PROBLEMS AND EXPERIENCE FROM ANTIQUITY

Original scientific paper
Autor: Prof. dr Biljana Stojanović
JEL: B11, F31, P51

Summary: In modern times, there is no single world money that globally prevails. In the period of antiquity (classical Greece and Rome), precious metals were recognised as the world money and their minted coins deemed to be appropriate monetary units that could acquire the status of international currency, as was the Greek tetradrachm and the Roman denarius. Experience from antiquity offers quite a few lessons on the prerequisites required for any single currency to be recognised as an international currency. Firstly, currency must maintain value stability over a rather substantial period of time. Secondly, the underlying currency stability factors are: economic growth, foreign economic and fiscal equilibrium. Thirdly, centralised money management organisation stands as an important prerequisite for stability of currency. Fourthly, political philosophy of state management is of fundamental importance for stability of currency as it impacts the model applied to the managing economy, and hence the manner of maintaining fiscal equilibrium and economic growth.

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