Posts by "paracelsius"

Adjustment. If bancor were to circulate as a common currency, then current account imbalances among the adopting economies would reflect structural rather than monetary considerations. Instead, if bancor were to circulate as a parallel currency but in a dominant role in place of the U.S. dollar, then as in the SDR-based system described above, current account imbalances that reflect today’s situation—namely, surplus countries pegging to bancor (the dominant currency in place of the U.S. dollar) with deficit countries floating against it—would adjust more symmetrically, and perhaps more automatically, than the current or SDR-based systems since the deficit currencies would be expected to depreciate against bancor.

hi
ashraf
The price of wheat, corn, cooper, gold is to a great extent
determined by the purchasing power of the dollar because the purchasing
power of the dollar has decreased