Abstract
Creation of voluntary regional economic alliances of independent countries was an important area of development of the regional and world economy at the end of XX-th century. They arise as a reaction on the dominance of the world’s few national currencies, playing a world level role. A basic feature characterizes trade relations in the framework of such alliances — a departure from the world’s currencies and the use of specially created regional ones. Practically the main obstacle to the emergence and spread of such unions is instability of regional currencies associated with their binding to one of the national currencies of the country — a member of the Union or to the gold standard. The article describes the theoretical solution and practical mechanism for creating independent of any national currency or gold, a supranational currency. The purchasing power of such a currency is determined by a specially created benchmark of purchasing power. It is demonstrated that the currency of this type allows using regional currencies without discrimination of member countries of the regional union. Also, there are given arguments about the prospect of using such currencies as the world’s.
Highlights
The idea of using intergovernmental regional currencies, alongside with or instead of acknowledged world ones, got powerful supporters such as the leaders of the largest countries after the crisis of 2008
We are going to show a possibility of setting up an independent currency purchasing power standard on the example of a national currency and, demonstrate that its prototype has been long used in economic theory and practice
When talking about purchasing power something should be taken as a value of purchasing power equal to 1, provide its invariability, which practically means set up a standard, and secure a reliable means of comparing all other carriers of purchasing power with this standard
Summary
The idea of using intergovernmental regional currencies, alongside with or instead of acknowledged world ones, got powerful supporters such as the leaders of the largest countries after the crisis of 2008. The accuracy of currency purchasing power assessment is determined by stock exchange quotation accuracy and judging by the fact that it is practically the only comparison mechanism because the better one hasn’t been invented The solution of both the problems is by the highest standards prevented by the natural origin of any existent currency. This means that currency purchasing power assessment by means of stock exchange quotations includes a nonfunctional constituent They are determined with a very big, from the point of view of a number of practical tasks, intermittent error. On the basis of price correlation in different currencies of one product or a small number of goods it is possible to estimate purchasing power parity only with a big uncertainty or error It is directly connected with a fundamental characteristic of currency purchasing power: its exclusively averaged value /see section 4/. Table Difference in GDP value of big countries in 2012 calculated on the basis of PPP and US dollar [14], rate (in US dollars in 2012)
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