Should there be one world currency?

Many arguments exist both for and against the establishment of a one world currency. Among the arguments for such a world's monetary unit include increased ease of international trade, reduced dependence on the US dollar (USD) and economics with great deficits and potential protection against regional changes or changes in economic stability. Arguments against one world currency include political and religious differences, lack of financial benefits and interest rates with redistribution of wealth.

In an increasingly globalized market, currency mobility is greater than ever. Some economists believe that it could encourage the country to easier to support the currency of the single world if they believe in its stability. Others, however, believe that the globalized market allows more competition in connection with currency, which allows you to compete. Both options bear potential benefits and risks, which further supports the debate on the benefits and dissadantages.

Optimal StudiesMonetary areas led to some arguments in favor of the global currency. According to research, optimal monetary areas can be places with geographical and capital mobility, high level of trade and similar trade cycles of the area that would benefit from one currency very much. Advantages may include reduced transaction costs, increased business equipment and increased confidence of money.

However, the study of optimal monetary areas shows that the globe is not an optimal monetary area. Not all countries are considered economically incompatible and may not benefit from global currency. Other potential problems include political disputes, war and religious differences, with one such difference in Islamic tradition the lack of usury in Islamic tradition. Even in existing areas bound by the only currency, such as the European Union or Top States, problems have been documented in existing systems.

a reduction in the dominance of the USD As a reserve currency is another argument that has powered the discussion and the desire to generate a single currency. Depending on the currency from a country on such a large deficit, it may cause high volatility of exchange rates at the international level for currency that were still followed by a dollar or dependent on its success. Since the largest reserve currency may cause problems with the US economy, such as inflation, also cause problems for economies around the world.

assuming that the creation of a world currency would lead to a central bank, among other problems include the establishment of interest rates and the question of who would retain the power of the bank. The world currency could try to calculate interest rates by building the richest country with the poorest in the world, threatening the capacity of the central bank to increase prosperity or create acceptable rates. The area above the central bank would also be a politically sensitive problem and reduce the confidence that the Member States had.yly represented.