Comments on: What's wrong with a universal/international currency? http://www.myylt.com/2009/05/30/whats-wrong-with-a-universalinternational-currency/ Discussion of Forex Trading and Currency Trading Wed, 23 May 2012 00:59:33 +0000 http://wordpress.org/?v=2.3.3 By: $so fresh so clean$ http://www.myylt.com/2009/05/30/whats-wrong-with-a-universalinternational-currency/#comment-14900 $so fresh so clean$ Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2009/05/30/whats-wrong-with-a-universalinternational-currency/#comment-14900 How can it be good? Where would the competition be? How can it be good?

Where would the competition be?

]]> By: meg http://www.myylt.com/2009/05/30/whats-wrong-with-a-universalinternational-currency/#comment-14901 meg Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2009/05/30/whats-wrong-with-a-universalinternational-currency/#comment-14901 There is a huge disparity of incomes and wages between countries, and this is compensated for by exchange rates when we trade and independent monetary policy. In a large country like the US we also see similar differences but because workers can move freely between regions, a equilibrium can still be reached, This is also true in the EU, They could only have a single currency after they remove barriers to the movement of labor. There is a huge disparity of incomes and wages between countries, and this is compensated for by exchange rates when we trade and independent monetary policy. In a large country like the US we also see similar differences but because workers can move freely between regions, a equilibrium can still be reached, This is also true in the EU, They could only have a single currency after they remove barriers to the movement of labor.

]]> By: Denim http://www.myylt.com/2009/05/30/whats-wrong-with-a-universalinternational-currency/#comment-14902 Denim Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2009/05/30/whats-wrong-with-a-universalinternational-currency/#comment-14902 I agree but not to the extent, it is somewhat an advantage as this can no longer provide confusion as to the fluctuating value of money of the application of universal currency system and Economists speculate that a currency crisis in one nation has the potential to spread fear amongst its trading partners, which could eventually lead to a currency epidemic. The recent and disastrous currency crises in Thailand, Mexico, Argentina and Russia have proven this to be true. The introduction of a universal currency would eliminate the possibility of such a potentially catastrophic situation but there are several disadvantages as well, some of which are: *A universal currency system without exchange rate volatility would ease the fears of creditor nations and might even encourage more lending between nations. *The creation of a universal currency will require the creation of a universal central bank to manage it. The bank will control the world's interest rates and therefore, its leaders will have considerable influence over individual economies. The process of selecting bank officials and figuring out an appropriate amount of representation for each country will surely be sore points of contention. Also, in order for the bank to function properly, it must be a fully independent institution. If one country or even one continent were to have undue influence on the bank's decisions then it will surely fail. I agree but not to the extent, it is somewhat an advantage as this can no longer provide confusion as to the fluctuating value of money of the application of universal currency system and Economists speculate that a currency crisis in one nation has the potential to spread fear amongst its trading partners, which could eventually lead to a currency epidemic. The recent and disastrous currency crises in Thailand, Mexico, Argentina and Russia have proven this to be true. The introduction of a universal currency would eliminate the possibility of such a potentially catastrophic situation but there are several disadvantages as well, some of which are:

*A universal currency system without exchange rate volatility would ease the fears of creditor nations and might even encourage more lending between nations.

*The creation of a universal currency will require the creation of a universal central bank to manage it. The bank will control the world's interest rates and therefore, its leaders will have considerable influence over individual economies. The process of selecting bank officials and figuring out an appropriate amount of representation for each country will surely be sore points of contention. Also, in order for the bank to function properly, it must be a fully independent institution. If one country or even one continent were to have undue influence on the bank's decisions then it will surely fail.

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