The theory of optimum currencies and a critique of the theory of optimum currency areas

Résumé

This doctoral thesis proposes a new Theory of Optimum Currencies as an alternative to the ideas of Robert Mundell, better known as the Theory of Optimum Currency Areas. Mundell’s ideas on the nature and origin of money are contrasted with those of Carl Menger and the Austrian School of Economics. The economic axioms and models used by Mundell are shown to be of little value and his understanding of the evolution of monetary history is shown to be lacking. A new Theory of Optimum Currencies is proposed and a corrected understanding of monetary history is proposed.