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Sebastian Helenius

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A Single World Currency and a World Central Bank - For or Against?

The debate is in the headline. Any opinions?

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  • Aug 21 2012: I find this question to bring up several points that need to be touched upon.

    First off, with economic instabilities across the world stage, a unified currency standard would create a much easier way of tracking global economic progress/regression. However, even in that case, the division of wealth between countries would be too great to overcome due to the inconsistency in a standard that one could measure upon. For example, what is to say that an apple grown in Chile has the same economic impact as an apple grown in the United States? And, therefore, would create an inadequate indicator.

    Second, though the banking system that drives the world economy may not be the most effective, it does provide an easy medium for capital to flow in and out of international markets. With exchange rates fluctuating every millisecond due to the fast paced world market, I could easily exchange my American currency for any I please and with up to date rates.

    Finally, and this is the nail in the coffin for me, there is no way that this proposition would ever gain ground upon any stage. Ignoring the current Eurozone crisis, it goes to primary human nature. As the realm of psychological egotism clearly defines, human beings are only motivated by self interest. Politicians have their country's interests at heart and, in the case of a democratic republic such as the United States, those officials have gained that power due to their views coinciding with those of the voting populous. Now, if someone could convince a high ranking political official, say the Prime Minister of the U.K., that the currency of the world is based on both the economy of their country and that of a Third World nation, I could see this idea work. Unfortunately, this would devalue that country and, in the process, kill the idea.

    It's a great idea for a Utopian society; sadly, the closest this world has seen to Utopia is that of which Sir Thomas Moore wrote. And that, ladies and gentleman, was fiction.

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