Volume 5, No. 4 (Winter 2002)
Monetary competition, a result of the abolition of legal tender, would seriously curtail the politization of the euro. But is it possible to completely separate the euro from politics without returning to the chaos of fiat national currencies (with either fixed or floating rates)? The answer is yes, certainly. A very simple alternative should be envisioned. This system would not lead to one of the past forms of the gold standard, but rather to a private gold standard of a new sort, beyond the manipulations of politicians and public authorities. Being the property of the users of money, the money supply would be determined by the holders of coins or claims on gold (notes or deposits).
