United States as a Monetary Union: A Lesson for Europe?

Abstract

From introduction: "Thirteen North American colonies gained independence from the United Kingdom of Great Britain in 1783, four years later the states agreed upon a constitution and set up a federation. Soon afterwards, with the election of the first president in 1789, the new nation established a well functioning central government. However, the country had no single currency until 1879 and no central bank until 1913. Nevertheless, in spite of the absence of institutions that are these days frequently perceived in the European Union (EU) as attributes of a powerful nation, the United States managed to settle vast new territories, develop new industries, as well as, wage and win wars. Consequently, at the time the Federal Reserve Bank (Fed) was created, the nation was already a recognized economic and political superpower. America’s entry into the first world war tipped the scale in favor of the Entente and president Wilson was in a position to play key role in the post-war peace conference."(...)