In this book, Elena Flor traces the evolution of the international monetary system over the last two centuries, from the system based on the gold standard, to that based on a dollar convertible to gold at a fixed exchange rate, to the emergence of the Euro, and the current multi-currency system.
SDR’s (Special Drawing Rights) were intended to eventually supplant the role of national currencies in general and the dollar in particular.
An important chapter in the evolution of the system towards a multi-currency structure (currently with three main currencies – dollar, euro, renmimbi – and two minor ones – yen and pound) was the process of European monetary unification, to which Elena Flor dedicates a significant part of the book.
Flor also illustrates how the international monetary system is increasingly becoming multi-currency. Countries whose currencies could gain increasing weight in the near future, up to becoming part of the SDR basket, could be Brazil, India and Russia. But there are also new techonological developments, such as virtual currencies like bitcoin, that may intersect with SDR’s in the future.
Overall, this book provide an interesting look back at how the international monetary system evolved and a speculative consideration of what could come next.