Money: From the Power of Finance to the Sovereignty of the Peoples (Global University for Sustainability Book Series)

What is money, where does it come from, what is its purpose? Does it increase national and international inequalities? Rémy Herrera’s book analyzes how the changes in the capitalist world system have consolidated, over the last decades, the supremacy of the U.S. dollar, but also how this hegemony has recently been challenged, both by rising State resistance initiatives and by the emergence of crypto-currencies, which raises many questions. Reviewing the situation of each continent, this book invites us to debate the liberation from the dollar domination, as well as the future of the euro, that of the CFA and CFP francs, of the Cuban peso or of the Chinese yuan, among others, but also the means to take in hand our collective future by mastering money. Introduction Contents About the Author List of Boxes 1 Rationale for the Existence of Money: Conceptual, Historical and Institutional Elements From Belief to Confidence... and to Measurement From the Earliest Days to Modern Times The Metamorphoses (and Contradictions) of Money Changes in the International Monetary System and National Policies The Current Systemic Crisis Anti-crisis Monetary Policy Measures References 2 The Monetary Hegemony of the United States: The Power of High Finance, the Reign of the Dollar and Global Chaos High Finance, from Its Controversial Origins to Its Current Contested Hegemony The Return of the Domination of High Finance in the Era of Neoliberalism “The Dollar Is Our Currency, but It’s Your Problem” From Another Currency Crisis (1997–1998) to the Global and Systemic Crisis (2007–2008) After the Shock (2008), the Monetary Policy Counter-Shocks (Since 2009) The Dollar as a Deterrent Weapon The United States Focused on Maintaining the Global Supremacy of the Dollar The Dollar Again, Still a Global Problem References 3 Europe, Between Aporias and Dead Ends: From the Straitjacket of the Euro to the Logic of Every Man for Himself Monetary and Financial Aspects of French “Socialism” (1981–1986) The Mechanisms of Regulation (of the State by the Financial Markets) From the “Strong Franc” to Frankfurt The Euro, a Monetary Straitjacket Every Man for Himself as a Collective Operating Mode The ECB, an Atypical and Ultra-Rigorous Institution Single Currency... or Common Currency? European Countries Whose Currency Is Not the Euro... ... or Which Are Not Members of the European Union References 4 Africa Under Influence, but in Struggle: Persistent Neocolonialism, Perpetual Debt and Neoliberalized Pan-Africanism Exchange Rates and the Vulnerability of African Economies A Variety of Monetary Policies Among the Countries with Flexible Regimes... ... but (Almost) All Subject to IMF Dictates The CFA Franc, a French-Style Anachronism? Effective Functioning and Alleged Advantages of the CFA Franc Limits and Criticisms... ... Limits and Criticisms Again The Eco... but Which One? References 5 Oceania, Often Forgotten, but So Revealing: Archaism of Peripheral Traditional Societies... or of the Forms of Central Monetary Domination? An “Irrational” Attitude Towards Money? A Special Space: Scattered but Hierarchical and Placed Under the Thumb of the Dollar Papua New Guinea, or the Direct Passage from Colonialism to Neoliberalism Mechanisms of Monetary and Financial Dependence on Australia Monetary Compensations The CFP Franc: “Financial Community” or... “French Colonies” in the Pacific? References 6 Latin and Caribbean America on the Way to Its Second Independence: Monetary Lessons from a Region in Rebellion The Other America of the Dollar: From Caribbean Tax Havens to Mexican Turmoil Argentina of the “Kirchnerismo” “Petista” Brazil Monetary Aspects of Three Revolutionary Advances: Ecuador, Bolivia, Venezuela The Cuban Experience From Dollarization to De-dollarization, the Challenge of Cuban Monetary Sovereignty References 7 Asia in Search of a Better Future for It (and for the World): From the “Asian Crisis” to Controlling Monetary Policy An “Asian” Crisis... Which Does Not Really Have Its Origin in Asia South Korea, or Neoliberal Relentlessness Resistances in 1998: From Malaysia to Vietnam The Domination of the U.S. Dollar, Again China (I): Facing the Power of the Financial Markets China (II): Building a Great Monetary Wall China (III): Placing Money at the Service of Development References 8 The March Towards Currencies at the Service of the Peoples: Systemic Crisis and Currency Wars or Alternatives of Sovereignty in a Multipolar World? Systemic Crisis and Currency War Some Nice Solutions, but Limited (or False) Recent Changes in Money and the Responses to Them Crypto-Currencies*: New Forms of Fictitious Money... and of Power Relations Towards a Multipolar World of Currencies... and of Crypto-Currencies The Chinese Yuan, Finally a Major Opponent to Face the Dollar Cooperate Between Southern and Eastern Countries to Loosen the Hold of the Dollar The Money Is Ours: Alternatives to Democratize Monetary Policy References Conclusion Appendices Appendix A: Some Chronological Markers of (World) History of Facts on Money Appendix B: Main Historical Landmarks of (Western) Economic Thought on Money Glossary Index What is money, where does it come from, what is its purpose? Does it increase national and international inequalities? Rémy Herrera's book analyzes how the changes in the capitalist world system have consolidated, over the last decades, the supremacy of the U.S. dollar, but also how this hegemony has recently been challenged, both by rising State resistance initiatives and by the emergence of crypto-currencies, which raises many questions. Reviewing the situation of each continent, this book invites us to debate the liberation from the dollar domination, as well as the future of the euro, that of the CFA and CFP francs, of the Cuban peso or of the Chinese yuan, among others, but also the means to take in hand our collective future by mastering money. Rémy Herrera is a French economist, researcher at the CNRS (Centre national de la Recherche scientifique, National Center of Scientific Research). He has worked in financial auditing and in international institutions, including the OECD and the World Bank. He is the author of numerous books and scientific articles on economics, and teaches in several universities, especially at the Centre d'Économie de la Sorbonne. He regularly collaborates with the CETIM (Center Europe Third World), notably by supporting it in its advisory role with the United Nations