The global economic integration has no prospects without global currency

Sajnoski, Krste and Paceskoski, Vlatko and Davcev, Ljupco (2013) The global economic integration has no prospects without global currency. The Future of Integration, the Future of the European Union. pp. 171-181. ISSN 978-954-23-0867-6


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After getting out of the recession as it is, into which the developed countries have fallen, the continuation of the processes of global economic integration becomes a priority task of the contemporary international economic relations. For its accomplishment, there has to be stopped the sharpening of global imbalances, it has to be ceased the taking of protectionist measures in relation to the competing economies, to be eliminated the danger of carrying out competing devaluations of national currencies in order to be avoided the danger of any consequent currency and trade wars.
The continuation of the processes of global integration is in the interest of every national economy. Not only the large and small economies, but also the developed and less developed countries achieve benefits out of that. Everyone has an interest to sell more dearly, and to purchase more cheaply, not only at the domestic, but at the foreign markets as well, using at the same time the effect of the volume of production achieved through the functioning of external markets, including also the positive competing pressure for reconstruction of the national economies, and for their rational incorporation in the international division of labour. At the same time, it has to be calculated also on certain adverse influences upon the national economies, and they should not be a reason for taking measures which disrupt the process of global integration.
The realization of potential benefits depends directly upon the reformation of the permanent international economic order. Its persistence in this form does not create a margin for improving the global integration processes. On the contrary, it generates disintegration processes and sharpening of the relations between the national economies. Such consequences can be overcome by creating a global currency, instead by the functioning of several national currencies as world money. For the realization of the rational international division of labour, it is necessary the return of fixed, but flexible exchange rates within the inter-currency relations in the world. The fluctuating rates are good only if they are relatively stable, and not when they fluctuate at high rates.
Key words: global integration, global currency, rational international division of labour, global imbalance, protectionist measures, competing devaluations

Item Type: Article
Subjects: Social Sciences > Economics and business
Divisions: Faculty of Economics
Depositing User: Vlatko Paceskoski
Date Deposited: 17 Sep 2013 11:41
Last Modified: 17 Sep 2013 11:41

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