Units of Account and Parallel Currencies in Transnational Transactions
Three recent developments should revive interest in the launching of a relatively stable unit of account as a parallel currency. This currency would be an alternative to national currencies and Euro-currencies (overwhelmingly the US dollar and German mark) for the denomination and even settlement, of transnational contracts which cannot—by definition—be simultaneously expressed in the national currency of each contracting party.
KeywordsExchange Rate Interest Rate Foreign Currency National Currency European Monetary
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