Ananalysisbythreeeconomists at theNationalInstituteofPublicFinanceandPolicyin Delhishows thatthe yuanalready has a discernibleinfluenceonas many as33currencies.
Finance is scarce, and it doesn't help that currencies--now including the South African rand (see our editor-in-chief's comment, p. 13)--are debauched.
Not only would such an arrangement generate countervailing forces to doubly ensure that neither the U.S. nor Europe went off gold unilaterally in the future, it also immediately would create two competitive reserve currencies, which would bring market forces to bear to prevent shenanigans by either central bank or finance ministry and provide an indirect restraint on parliamentary borrowing.