Healthy Money Healthy Planet - library.uniteddiversity.coop

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Countries using the Australian dollar Kiribati, Tuvalu, Nauru.
Countries/territories using the US dollar Marshall Islands, Federated States of
Micronesia, American Samoa, Palau, Guam.
Countries using the New Zealand dollar Cook Islands, Niue, Tokelau.
Countries/territories using the French Pacific franc French Polynesia, New Caledonia,
Wallis and Futuna.
Coexisting Currencies – Answering the Objections
As discussed so far in this chapter, supranational currencies are desirable to facilitate
trade between nations. The disadvantages to adopting such a currency can be overcome
if other currencies – national and local – are allowed to coexist alongside it and
complement it. There are objections to such currency diversity, specifically claims that
inflation and loss of control will result. These objections are dealt with below.
Inflation
One major argument against multiple currencies is that two reserve banks – as would
exist in New Zealand if there was a national currency (controlled by the Reserve Bank of
New Zealand) coexisting with a supranational currency such as the Anzac dollar
(controlled by an Anzac reserve bank) – wouldn’t together be able to control inflation so
easily. This is not true, but the process, much as in a living system, would require
constant negotiation and adjustment according to feedback. The Anzac reserve bank
would thus find itself in constant negotiation with the Reserve Bank of New Zealand.
In any case, the situation with regards inflation would be no worse than it is now
with the national currency. Inflation over the past 50 years has been such that NZ$1 in
1950 was worth a mere 4¢ in 2000. Even the last decade, when inflation has been kept
more under control, the value of the New Zealand dollar has been steadily eroded.
While it is true that too much money brings inflation, and that it is important to keep the
money supply just sufficient in quantity to buy the goods and services available in the
economy, it is equally important to issue the right sort of money.
Loss of Central Control
Decentralisation is actually a good thing – just look at natural living systems around