The president of the Group of 20 (G-20) leading rich and developing nations is in Washington to discuss a strategy for global economic coordination of financial stability before a G-20 meeting scheduled this month.
With a weak dollar in global markets, French President Nicolas Sarkozy wants to convince Americans about the benefit of reducing currency volatility, according to the Associated Press.
Sarkozy thinks the global monetary system should not rely so heavily on the U.S. dollar as the world’s main reserve currency. He has not proposed specifics about how he envisions a possible future system.
At the root of the problem is how the market for financial derivatives is able to manipulate the value of America’s fiat currency, which Barack Obama has said should be subject to price fluctuations, like any other product or service.
In addition to believing in the same foundation of sound money wanted by the G-20, economist Judy Shelton advises a Republican platform to take advantage of opportunity for applying the recommendation of President George Washington’s farewell address, with dollarization leading to “the glory of recommending [the U.S. Constitution] to the applause, the affection, and adoption of every nation which is yet a stranger.”
The dollarization hearing was the perfect opportunity to announce to our trade partners and regional neighbors that, yes, we do believe that economic growth and high employment are best fostered by sound money. And we welcome your interest in giving legal-tender status to the U.S. dollar within your own territory. It’s a high compliment to us, and the beginning of your own sound-money commitment.
Judy Shelton, “The Dollarization Debate,” The Wall Street Journal, April 29, 1999. A1.
Judy Shelton, “Our One-Dollar Dilemma,” The Wall Street Journal, September 27, 2007, A17.