It was interesting to hear in today’s budget that the Chancellor plans to trade Chinese currency in London. It is testament one supposes to the increased dominance of China on overseas markets that this move is necessary to keep London as a major nodal point in the global economy. I wonder if someday we will be keeping Chinese currency in our foreign reserves; it would be an atrractive investment which would undoubtedly offer a good return.
This leads me to prompt another suggestion – can the Internet be understood as an ‘economy’, capable of economic growth? This would be difficult to gague without using some metric or other. So perhaps economist should invent the Internet Dollar, a metric (not a real currency) that can be used concurrently with other metric to gauge the economic value of the internet and its economic growth.
One might say that we can easily measure the ecomomic value of the Internet in US dollars. But there is value in having a unique metric. If the internet dollar existed, at first it would be used by economists to define the Internet across national boundaries as a ‘space’ or ‘territory’ in its own right with its own economic value. It would be used as a metric of economic growth in this cyber territory. However in the medium term there is no reason why clever people in finance could not start talking about the Internet Dollar as a real currency, and start using it like a real currency in terms of placing their confidence in it as a abatract representation of the value of transnational information to us. Eventually it would be a real, if fudiciary, currency in its own right, a bit like similar non state currencies that have already been proposed.
It would be interesting indeed if the day came when Britain’s foreign reserves stated a confidence in the impermeability and economic growth of the Internet as opposed to traditional nation states.