Overcoming the Global Trilemma: New Monetary Politics in the Anthropocene: Dani Rodrik Revised
This paper will review the concept of the “open economic trilemma” between national sovereignty, global integration and democratic politics. It will introduce, as a possible solution, the concept of a parallel dual currency system operating through new monetary channels using distributive ledger...
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| Format: | Article |
| Language: | English |
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Risk Institute, Trieste- Geneva
2019-10-01
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| Series: | Cadmus |
| Online Access: | http://cadmusjournal.org/article/volume-4/issue-1/overcoming-global-trilemma-new-monetary-politics-anthropocene-dani-rodrik-r |
| Summary: | This paper will review the concept of the “open economic trilemma” between national
sovereignty, global integration and democratic politics. It will introduce, as a possible
solution, the concept of a parallel dual currency system operating through new monetary
channels using distributive ledger technology. Although not apparent at first glance, this
additional system could provide a Pareto-superior optimum by integrating spillovers and
negative externalities and by fostering political efficacy on a national level. Monetary
autonomy, national sovereignty and further global integration could thus become
possible. In short, the existing global currency system leaves global economic integration
in a suboptimal equilibrium. The current hype surrounding cryptocurrencies provides a
preliminary rationale for a dual currency system. Designed in the right manner, a dual
currency system could provide the necessary change towards greater wealth while leading
to a more sustainable planet. |
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| ISSN: | 2038-5242 2038-5250 |