Monday, December 12, 2011

What are advantages and disadvantages of unified global currency?

I need to know what are the pros and cons of having unified global currency from an economic perspective.Thank u all..|||The worst thing about global currency is the same as the worst thing about a truly global food supply or energy supply. You have what is known as a single point of failure. If the one currency crashes then everything crashes. At present, if the dollar crashes then gold or the Yuan or the Yen could conceivably pick up the slack.





If you want a totalitarian dictatorship wherein a small group of people have control over the whole world, then a one world global currency is a good thing. That's way Communists and Marxist want one currency--one ring to rule them all.





If you had one currency then there would be no exchange rates to worry about. In theory the money supply could be regulated to control inflation.





Again if you are are Marxist or Communist, it would be easier to divert the money from people who earned it to people who don't work and don't intend to.

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