You pose a very good question, but I don't think that we will ever have a global currency atleast not in my life time :). In todays booming economy where the trade barriers are being lifted with the signing of free trade agreements accross the globe it would make good sense, as there seem to be lot of advantages of having a global currency. Some of the benefits are based upon the fact that it would level the playing field, save money in transaction costs on the FOREX exchange (now that I think about it there won't be any need to have a FOREX exchange), one Global Central bank, eliminate currency risks and there are countless other benefits, but in today's geo political environment this idea seems to be a far fetched dream. On the other hand maybe they can start by adding a few countries at a time like they are doing for the EURO in Europe.
Another thing is that in the old days we used to have a global currency: GOLD! If there was a global currency what would you name it??? Wrld (-W-)
Anyways, on a side note this reminds of that song from the movie cash :)) Cash to da left for me, Cash is right for me, Cash to da the front for me, Cash is the back for me, Cash is the day for me, Cash is nite for me Cash on mind making money all da time.
I just don't think it will be practically possible to have or define a global currency. I am not sure even on paper how would it work.Relative strengths and values of currencies are determined by total value of goods that country produces v/s total value of goods/services that country imports. So, in other words, it would be like a nightmare trying to print more money and predict, how much of it should be with China v/s India v/s Japan. Currency in a way or fashion is just like any other good or commodity which is traded in the market, and if everyone starts using the same, it probably would lead to lot of manipulation at multiple levels. But, again, probably these are just my 2 cents.
BTW, what would happen to all those currency collectors like me, you would deprive them of this one nice hobby :)...
Hi Guys, sorry about delay in posting… Good points…
I will not start with benefits of having a global currency, but I will start from what are the problems we are having today. Just today, about trillion dollars worth of currency will be traded, costing billions to consumers and organizations. Every country is running a rat race to keep its currency strong. Worst thing is currency is measured against currencies, so every country is at unnecessary risk. In addition, as we become more and more global, currency fluctuations affect the businesses. Therefore, we need global one global currency.
As Preeti mentioned in her blog countries had inflation of 10,000 %. Now I will also mention a very filthy reality that we never read or hear but it takes place all the time. Many of the fortune 500 companies, just to keep up with there numbers for Wall Street, they trade currencies. Organization buy lot of currency, jack up there values and do a major sell off and put smaller countries in trouble.
Being a student of Enterprise Engineering, I always think and discuss how world would be in coming decades. I will take this from “World is flat”, in olden days countries competed against it each other, after that we had industrial revolution where industries competed against each other, and now we are in era where people compete against each other. Now think it this way, when countries competed, you needed something to be better then other, but now when people compete against each other why do we need a different platforms or so called currencies, just bring the world to one single platform.
I had a discussion with my major professor about 4 years ago, like in today’s world how we see mergers, acquisitions of companies all the time, in the coming decades, countries will be run like corporate, and countries will compete for people not for money, and that’s where countries will merge… just think in that direction and importance of a global currency…
Just look at Europe where the European Union has new Euro, it just makes them stronger. Biggest benefit would be a country will not have to worry about money and can focus on other issues, as its money is valueless.
In addition, we will not need all that foreign reserves/assets in stocks or bonds and all that related nine yards, no interest rate issue, no fed regulations…
The problem is Change Management, such kind of change is complex not from economic standpoint but our society, our social structure is fundamentally attached to wealth in certain fashion. Which is difficult to change… but I tell yea, its coming in next 3-4 decades. Implementation and control would be from one standalone point or international commission. A global currency would bring a new stability and take this world to a new level.
5 comments:
You pose a very good question, but I don't think that we will ever have a global currency atleast not in my life time :). In todays booming economy where the trade barriers are being lifted with the signing of free trade agreements accross the globe it would make good sense, as there seem to be lot of advantages of having a global currency. Some of the benefits are based upon the fact that it would level the playing field, save money in transaction costs on the FOREX exchange (now that I think about it there won't be any need to have a FOREX exchange), one Global Central bank, eliminate currency risks and there are countless other benefits, but in today's geo political environment this idea seems to be a far fetched dream. On the other hand maybe they can start by adding a few countries at a time like they are doing for the EURO in Europe.
Another thing is that in the old days we used to have a global currency: GOLD! If there was a global currency what would you name it??? Wrld (-W-)
Anyways, on a side note this reminds of that song from the movie cash :)) Cash to da left for me, Cash is right for me, Cash to da the front for me, Cash is the back for me, Cash is the day for me, Cash is nite for me Cash on mind making money all da time.
I just don't think it will be practically possible to have or define a global currency. I am not sure even on paper how would it work.Relative strengths and values of currencies are determined by total value of goods that country produces v/s total value of goods/services that country imports. So, in other words, it would be like a nightmare trying to print more money and predict, how much of it should be with China v/s India v/s Japan. Currency in a way or fashion is just like any other good or commodity which is traded in the market, and if everyone starts using the same, it probably would lead to lot of manipulation at multiple levels. But, again, probably these are just my 2 cents.
BTW, what would happen to all those currency collectors like me, you would deprive them of this one nice hobby :)...
Let's just say for the sake of having fun that if there were to be a Global Currency what would you call it?
Hi Guys, sorry about delay in posting… Good points…
I will not start with benefits of having a global currency, but I will start from what are the problems we are having today. Just today, about trillion dollars worth of currency will be traded, costing billions to consumers and organizations. Every country is running a rat race to keep its currency strong. Worst thing is currency is measured against currencies, so every country is at unnecessary risk. In addition, as we become more and more global, currency fluctuations affect the businesses. Therefore, we need global one global currency.
As Preeti mentioned in her blog countries had inflation of 10,000 %. Now I will also mention a very filthy reality that we never read or hear but it takes place all the time. Many of the fortune 500 companies, just to keep up with there numbers for Wall Street, they trade currencies. Organization buy lot of currency, jack up there values and do a major sell off and put smaller countries in trouble.
Being a student of Enterprise Engineering, I always think and discuss how world would be in coming decades. I will take this from “World is flat”, in olden days countries competed against it each other, after that we had industrial revolution where industries competed against each other, and now we are in era where people compete against each other. Now think it this way, when countries competed, you needed something to be better then other, but now when people compete against each other why do we need a different platforms or so called currencies, just bring the world to one single platform.
I had a discussion with my major professor about 4 years ago, like in today’s world how we see mergers, acquisitions of companies all the time, in the coming decades, countries will be run like corporate, and countries will compete for people not for money, and that’s where countries will merge… just think in that direction and importance of a global currency…
Just look at Europe where the European Union has new Euro, it just makes them stronger. Biggest benefit would be a country will not have to worry about money and can focus on other issues, as its money is valueless.
In addition, we will not need all that foreign reserves/assets in stocks or bonds and all that related nine yards, no interest rate issue, no fed regulations…
The problem is Change Management, such kind of change is complex not from economic standpoint but our society, our social structure is fundamentally attached to wealth in certain fashion. Which is difficult to change… but I tell yea, its coming in next 3-4 decades. Implementation and control would be from one standalone point or international commission. A global currency would bring a new stability and take this world to a new level.
what happened... no further comments.. questions... ????
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