FIAT MONETARY REGIME AND COOPERATION THEORY

Fiat Monetary Regime is a serious problem for world policy makers. A major obstacle to the operation and indeed survival of this “current unprec-edented fi at monetary regime” or system are the member nation-states with competing and often confl icting agendas. In short, nationalism may simply overwhelm the monetary regime.Is it possible to modify existing nation-state institutions and policies so that each participant nation-state in the fi at monetary regime acts as in a free market to promote an end that was no part of its intention, as though led by the Smithian invisible hand? For useful insight this paper turns to the theory of cooperation.