As the title suggest, i was curious as to whether a unified currency for each country in the world, using cost-benefit analysis to intrept the situation, is economically justified. In other words, is it more profitable or costly to have such a system, or no. What are the effects on international trade, taxes, or employment, standard of living, etc? Would it be better for the people of third world, or developing countries?
A single currency would allow for easy capital transfers I would imagine, but it is said in the bible there once there is a one world currency Armageddon should come soon afterwards, that’s what I’ve been told (don’t mind me I’m catholic). If there is one currency the international community would get rid of macroeconomics, and focus on microeconomics. I would assume that nations would begin to gear their economies into their realistic comparative advantage, and economies would be rich dependant on their capital, and labour resources. Although I am not so sure that nations are wiling to give up their currencies just yet.
giving up currency control is giving up your central backbone bankwise and otherwise. This would reap a lot of havok in the begining. And most of it would be suffered by 3rd world & developing countries. The most efficient and rich ecconomies would gain from this but they would also loose. Imagine each nations treasury not getting income from printing new currency and controls that would depreciate it when investment is needed and appreciate it to cool down investment.
