The current upheaval in international money markets has focused increasing attention on the proposed creation of a single European currency. In opposition to such a proposal, Robert Barro, a contributing editor of The Wall Street Journal, argues in the following article that a centralized currency is a precursor to centralized government (reprinted, with permission, The Wall Street Journal, August 13, 1992).
In response, Minneapolis Fed Research Director Arthur J. Rolnick disputes Barro's claim and says a unified currency—or a fixed exchange rate system—will promote international trade and bring prosperity to participating countries. Rolnick, along with Minneapolis Fed Senior Research Officer Warren E. Weber, argued for fixed exchange rates in the bank's 1989 Annual Report.
Europe's road to serfdom
by Robert J. Barro
A unified currency will mean prosperity
by Arthur J. Rolnick
