Nordic Monetary Union (Twilight of a New Era)

The Nordic Monetary Union is a partial currency union of Denmark, Norway, Sweden, Iceland, Finland and Estonia created in 1931, after the Economic crisis of the previous year. The Scandinavian countries where greatly affected by the lack of credit and loans. After the crisis it was difficult to boast their national economies and public spending and investment was becoming the only policy implemented by most socialdemocratic and agrarian governments in Scandinavia and Estonia. The funding of unemployment benefits, new state welfare services, agricultural subsidies and rural poverty relief produced a rare consensus in all governments. The new consensus was the need to control credit, secure loans and an expansionary monetary policy to create demand and fund public spending. In November of 1931 the governments of Denmark, Norway, Sweden, Iceland, Finland and Estonia agree to recreate a new Scandinavian Monetary Union. The value of all currencies would be determined by a basket of currencies, regulated and supervised by the central banks of the members states. The member states would mutually guarantee all their public loans, promote and built public works of common interest, set common banking regulations for the area and promote flow of private capital.