When there is a single global currency, it would be the only medium of exchange. Nowadays, there are 182 currencies flowing in the world. Although people seem to be accustomed to this, there are opinions about issuing a single global currency. In 1944, John Maynard Keynes, the developer of Keynesian economics, proposed a new global currency clearing system called the "Bancor"; 43 years later, George Soros, a famous currency trader, called for the creation of a single global currency in his book.
The Alchemy of Finance; James Tobin, a 1981 Nobel Laureate, claimed that a single global currency is not without problems. These ideas from different economic thinkers implicate that if we prefer a market with fewer uncertainties on long-term monetary policies, we should figure out whether the world economy would function better with a single global currency.
This essay mainly focuses on pros and cons of using a single global currency in the world economy. Firstly, it analyses about how a single global currency can increase LEDCs exports and speed up globalization in the perspective of behavioural economics and their positive economic impacts. Then, it discusses the relationship between the recent Greek Debt Crisis and a single global currency. Finally, the essay would suggest how and when a single global currency should be issued in order for the world economy to function in a better way.
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Would the World Economy Function Better with a Single Global Currency?
