MLA 8
Pong, LIE Chun. "A Paradigm Shift in Monetary Systems: A Supranational “World Currency”." Int. j. of Social Science and Economic Research, vol. 11, no. 8, Aug. 2026, pp. 4108-4116, doi.org/10.46609/IJSSER.2026.v11i08.030. Accessed Aug. 2026.
APA 6
Pong, L. (2026, August). A Paradigm Shift in Monetary Systems: A Supranational “World Currency”. Int. j. of Social Science and Economic Research, 11(8), 4108-4116. Retrieved from https://doi.org/10.46609/IJSSER.2026.v11i08.030
Chicago
Pong, LIE Chun. "A Paradigm Shift in Monetary Systems: A Supranational “World Currency”." Int. j. of Social Science and Economic Research 11, no. 8 (August 2026), 4108-4116. Accessed August, 2026. https://doi.org/10.46609/IJSSER.2026.v11i08.030.
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References
[1] . Cassel, G. (1918). Abnormal deviations in international exchanges.
[2] . Fisher, I. (1911). The purchasing power of money.
[3] . Fleming, J. M. (1962). Domestic financial policies under fixed and under floating exchange rates.
[4] . Gresham, T. (original formulation associated with sixteenth-century monetary analysis). Gresham’s law.
[5] . Marshall, A. (1923). Money, credit and commerce.
[6] . Mundell, R. A. (1963). Capital mobility and stabilization policy under fixed and flexible exchange rates.
[7] . Triffin, R. (1960). Gold and the dollar crisis: The future of convertibility.
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ABSTRACT:
The international monetary system remains heavily dependent on the United States dollar, which
functions simultaneously as a reserve asset, a unit of account, a medium of international
settlement, and a major store of value. Although dollar centrality has supported global trade and
financial integration, it has also generated structural vulnerabilities, including reserve
concentration, persistent global payment imbalances, exposure to United States monetary and
fiscal policies, and recurrent instability in cross-border capital flows. This paper examines the
theoretical and institutional foundations of a possible transition toward a supranational world
currency. It reviews selected monetary theories, including Gresham’s law, the quantity theory of
money, purchasing power parity, the Marshall–Lerner condition, and the Mundell–Fleming
model, and evaluates their relevance to the design of an integrated monetary framework. The
paper further develops a contractual interpretation of money, arguing that money functions not
only as a medium of exchange but also as a socially recognized claim on future goods, services,
and labor time. On this basis, the paper proposes a gradual, institutionally governed transition
from competing currency blocs toward a global currency administered by an independent
supranational monetary authority. The proposal is intended to reduce exchange-rate risk and
transaction costs while addressing, rather than merely relocating, the governance problems
associated with monetary power. The paper concludes that global monetary integration may
offer important efficiency gains, but its feasibility depends on credible governance, democratic
accountability, fiscal coordination, financial regulation, and mechanisms for accommodating
regional economic differences.
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International Journal of Social Science & Economic Research
