The China Times

Robert Mundell: World needs a global currency and yuan should be included

May 14, 2012

May 14, Nobel laureate in economics, the “Father of Euro,” famous economist Robert Mundell arrive at Chongqing University and gave a speech titled “The international economic trends and the future economic development of China”.

In the speech Mundell said despite the dollar is still the most important currency, however, the U.S. dollar is no longer so strong as before, now the world needs a global currency.

“We are not saying a unified ‘world currency’, it can be a variety of currencies, a currency union. Different countries have their own currency. We can call it the ‘intor‘”.

The name of the global currency “Intor” comes from the word “International” in English (int) and the word “gold” in French (or).

Mundell also mentioned the establishment of the “intor” needs the stability of the exchange rate between the world’s major currencies, which means first determine the fixed exchange rate between the euro and the dollar.

“China’s influence can not be ignored, the yuan has be included in this system, but the yuan should be involved in the process of international currency convertibility”, said Mundell.

Mundell will stay in Chongqing for two days, he attended three events on May 14th, tomorrow he’ll visit Jiangbeizui CBD, the future financial center of Chongqing. During his stay he’ll also experience local culture of Chongqing, enjoying hot pot and famous night scene along Chongqing’s river bank.

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