Father of Euro calls for a new global "basket" currency

http://gulfnews.com/business/economy/economist-calls-for-a-new-global-currency-1.1191382

Amman: Robert Mundell, an economist and a 1999 Nobel Prize winner, and current professor at Columbia University and advisor to the Chinese government, has called for a new global currency, saying that the dollar era had “gone with the wind”. He calls for a new international “cocktail or basket of major world currencies”.

Mundell who was visiting Amman last week, said that the main reason for 2008 financial crisis is that the US Federal Reserve had allowed major increases in the value of US dollar, which had deflationary effects and had exacerbated the country’s real economy further, conducive to the Lego-effect of decline in the world economies thereof.

“I call for the replacement of the US dollar as the major world currency system with special drawing rights (SDRs) backed by major currencies,” Mundell said.

He added that the new currency system should be based on ADRs (American Depositary Receipts), including the US dollar, the Euro, the Chinese Yuan, the Japanese Yen and the Russian Ruble.