What if the world all used the same currency?
Personal, I believe Global currency would bring worldwide problems. The world did share common currency at one time - it was gold and silver.
Trouble was that various rulers would get greedy and start debasing the coinage. The same thing can happen with a common fiat currency. All they have to do is relax lending standards or reserve requirements. Instant inflation.
When it was Gold, it didn't inflate the currency - people just stopped accepting coinage from that realm. A common fiat currency wouldn't have that feature.
Great article-read below
By John W. Schoen
With the value of the dollar jumping up and down against other countries' currencies, what if the world just agreed to use the same currency? It sounds like a simple idea. But like many simple ideas, it would come with all kinds of unintended consequences.
Recently, Chinese leaders argued for the creation of a unified global currency, a concept that has been proposed by a number of academics and political officials in modern economic history. While the idea has certainly not received widespread support, the success of the euro demonstrates that currency unification can work and may even have certain economic benefits. What ramifications might the adoption of a universal currency have on global trade and national economies in general?
— R.Z., New York
The Chinese proposal for a single global currency was part of Beijing’s effort to take a more prominent place among world powers at the recent G20 meeting. And they have legitimate reason to float the idea of replacing the dollar as the “reserve” currency — the medium of exchange used for the majority of financial transactions around the world.
read more here: http://www.msnbc.msn.com/id/30047877/
A global currency is not needed, I think each country currency should be putt to an equal value. Representing their culture and the nation.
Created at 04/08/2009 - 22:58
Michael: Haven't really researched or contemplated this too much, but I do enjoy that each country has in the past shown their nationalism by putting reveared sons and daughters of each nation on their currency. As a convenience factor though, it would make purchasing while traveling easier. Holly
Created at 04/08/2009 - 21:35