labels: finance - general, economy - general
Fewer currencies can target inflation better, says mathematician John Nashnews
20 February 2007

Mumbai: Nobel laureate mathematician John Forbes Nash, who inspired the Hollywood film, A Beautiful Mind, says inflation could be controlled more effectively if major global currencies collectively adopt the same target rate.

Recognised for his principles of game theory, the branch of mathematics that examines rivalries among competitors with mixed interests, Nash likened the currencies as the rivals and the mixed interest as being their quest for a stable value.

Citing the case of Italy and Greece, who have accepted the use of the newly established euro, over their own Lira and Drachma respectively, Nash said, "In the near future, there may be a smaller number of major currencies used in the world and these may stand in competitive relations among themselves," Nash said here.

Delivering a lecture under the Nobel laureate series organised jointly by the ministry of external affairs and CII, in Mumbai, on "Ideal money and asymptotically ideal money", Nash said, "There is now the euro and the inflationary tradition of the Italian Lira seems to be past history now."

There could be a similar international currency for the Islamic world and South America, he said. Nash said inflation opens the possibility that somehow the various major currencies may evolve to develop stability of value.

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Fewer currencies can target inflation better, says mathematician John Nash