What would happen with the economy if a global currency or a type of fixed change existed? ¿consequences?¿adva

Question

What would happen with the economy if a global currency or a type of fixed change existed? ¿consequences?¿advantages?

Answer 1

Whenever we opt for a change, we must be ready to face the pros and cons. A little disturbance in the field of exchange would be experienced but uniformity in currency would certainly help easy exchange pattern.

Answer 2

Finance Ministers of Countries and Chairmans of various Finance commissions in different parts of the world dream to have a Global Currency in Place. People at IMF and World Bank would love to have one in place.

Some Sucesses are Euro (Currency of European Union), Proposal of A.B. Vagpayee to have a South Asian Currency, criticized by Pakistan.

Consequencies

1. Developed countries would loose something and Developing Countries would gain something.

Advantages

1. Hassle free transfers of money.
2. Reduction of Complexity
3. Reduced Risk of Economic collapse of a country.
4. Advantage for Global Business.
5. Big Boost for WTO

World Bank and IMF are working together to put a Global Currency in place through political concensus.

Answer 3

It would mean regional rates of inflation that were uncontrollable,and a centralization of capital in certain areas.Without free market economies to support currencies,they would have no real value.