The theme of the “Currency War” remains a great classic that has been the subject of abundant literature, stimulating for economists and invigorating for generations of students. But the “New Currency War » that is looming, in the wake of the upheavals linked to digital technologies, promises to introduce new challenges, without being able to erase the fundamentals, in terms of status of common good, sovereignty and the purpose of improving each competitive position. This is indeed the thesis developed by this duo of authors whose expertise is well established – Christian de Boissieu and Marc Schwartz – in this brilliant publication, displaying a conviction that “the “New” Currency War »will oppose, in the digital sphere, public currencies and private currencies”. Also, one of the great merits of this very well-documented work is that it offers a broad panorama of reflection on each component of this issue: the relations between currency, power, and sovereignty, extended to the political and social dimension of currency; the evolution of the power of Central Banks; the future of cash in the face of digital currency; the unduly consecrated active cryptos, as the authors also wonder about the future of the official digital currencies of Central Banks, versus the public-private currency war; reserve currencies and the illusion of “de-dollarization”; the financial aspects of the energy transition; and the implied financing conflicts.
Finally, the authors attach great importance to the need to develop a “qualitative theory” complementing the various quantitative approaches: the major facets of money – stability, liquidity, backing by developed financial markets, political and social role, international influence, available quantity – must also take into account the duty of competitiveness of the currency which is not reduced to its exchange rate but “can face the competition of other currencies and embody a country or an economic zone”.
A reference publication, valuable for specialists and essential for students and a wide audience looking for meaning in the evolution of monetary policies.
Christian de BOISSIEU: Professor Emeritus of Paris1 Panthéon Sorbonne – Vice President of the Cercle des Economistes. Marc SCHWARTZ: CEO of La Monnaie de Paris.
Jean- louis CHAMBON’ s note
