A second option is currency substitution, namely the unilateral adoption, either de jure or de facto, of a typical anchor currency, such as the US dollar or the euro, as legal tender. “Dollarisation”, as well as “euroisation”, is a policy option open to a wide number of open economies with a high degree of trade and financial integration with the anchor currency.
I shall take a closer look at this option in the final part of my speech. Finally, the third option is super-nationalisation of money à la Mundell. This is the path which was followed by 11 Member States of the European Union (EU) when they adopted the euro one year ago.