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Should there be a universal currency?

Every country has their currency, but should a universal one be used?
Exchange rates can limit people from harbouring the same potential/ value that the original currency had, but it can also do the exact opposite.
So, when it comes to development of a country or day to day spending of tourists should there be a universal currency, and do different currencies help or hinder their development when it comes to trade with other countries?

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I think your thread title might need to be amended, as most people will assume that you want to talk about universal basic income.

Reply 2

Original post
by Admit-One
I think your thread title might need to be amended, as most people will assume that you want to talk about universal basic income.

ah i see, got my terms mixed up but have changed it now

Reply 3

Nah a universal currency is an L in my opinion, I want the UK to have control over its own economy so I’m against the Eurozone (or at least the UK joining it despite the lack of exchange rates being nice). Euros just suck too, pounds are way better in my opinion.

Countries like Czech Republic, Poland and Sweden haven’t switched to the Euro via being able to abuse the system and I don’t blame then. I don’t blame countries being opposed to switching to a universal currency (or the Euro in the case of EU countries).

Countries like Greece for example should definitely not be using the same currency as France and Germany right now imo. They (Greece) shouldn’t have been able to use the Euro in the first place.

Reply 4

It would require a fairly insane reform of the current system such that it’s just not a feasible option…

And then you’ve got other problems: the entire world would have to agree on the money supply and interest rates adopted, and monetary policy as an economic lever would completely be eliminated for individual nations.

Reply 5

We would pretty much need world peace first, and that's not even being sarcastic.

Reply 6

Original post
by Talkative Toad
Nah a universal currency is an L in my opinion, I want the UK to have control over its own economy so I’m against the Eurozone (or at least the UK joining it despite the lack of exchange rates being nice). Euros just suck too, pounds are way better in my opinion.
Countries like Czech Republic, Poland and Sweden haven’t switched to the Euro via being able to abuse the system and I don’t blame then. I don’t blame countries being opposed to switching to a universal currency (or the Euro in the case of EU countries).
Countries like Greece for example should definitely not be using the same currency as France and Germany right now imo. They (Greece) shouldn’t have been able to use the Euro in the first place.

whatt dont you like about euros? i mean the exchnage rate is pretty similar but tbh im ambivalent towards them
yeah no i agree, certainly about the economies bit
what makes you think greece shouldnt have transitioned to the euro?

Reply 7

Original post
by sdfj
It would require a fairly insane reform of the current system such that it’s just not a feasible option…
And then you’ve got other problems: the entire world would have to agree on the money supply and interest rates adopted, and monetary policy as an economic lever would completely be eliminated for individual nations.

it was very hypothetical my question but i do agree in that everyone shouldnt change to a universal one

Reply 8

Original post
by daisy.ch2
whatt dont you like about euros? i mean the exchnage rate is pretty similar but tbh im ambivalent towards them
yeah no i agree, certainly about the economies bit
what makes you think greece shouldnt have transitioned to the euro?

"what makes you think Greece shouldn't have transitioned to the euro?"

Because they were nearly broke and losing any control over 'their' currency sent them into a massive debt spiral, damaging the credibility of the Euro overall.

Like if you control your own currency you can introduce more to devalue it, or buy it up to strengthen it, (broadly) to meet your economy needs, but if you sign up to the Euro, esp as a weaker economy then you're not in control any more, you'd like to print more money to meet needs but now you need other economies permission, and the stronger economies like Germany or France have little interest in devaluing their assets. So you end up with a situation where other countries dictate to a weaker Greece what it can and can't do, to receive any lending/debt relief they had to make huge concessions such as imposing huge austerity on their services and limited regime change, leading to civil disorder/bankrupcies etc making everything worse.

Reply 9

Original post
by daisy.ch2
whatt dont you like about euros? i mean the exchnage rate is pretty similar but tbh im ambivalent towards them
yeah no i agree, certainly about the economies bit
what makes you think greece shouldnt have transitioned to the euro?

Greece has a much weaker economy/purchasing power compared to Germany for example.

The Euro is worth “less” the Pound (as in £1 is worth more than €1).

Also switching to the Euro or any other universal/continental currency gives the UK an excuse to blame its economic mismanagement on the EU or nations in general imo. The UK is already doing this now to an extent (blaming others rather than admitting that that they messing up), we don’t need a bigger reason for them to be able to do that.

Disclaimer: I’m not (well) versed in economics.

Reply 10

Original post
by Talkative Toad
Greece has a much weaker economy/purchasing power compared to Germany for example.
The Euro is worth “less” the Pound (as in £1 is worth more than €1).
Also switching to the Euro or any other universal/continental currency gives the UK an excuse to blame its economic mismanagement on the EU or nations in general imo. The UK is already doing this now to an extent (blaming others rather than admitting that that they messing up), we don’t need a bigger reason for them to be able to do that.
Disclaimer: I’m not (well) versed in economics.
ah i see, that makes sense ( i totally agree on that the uk is js playing a blame game right now )
no worries, neither am i! (as you can probably tell)
(edited 7 months ago)
I think we would soon find that the economies of different countries are very different and that makes a global currency (and the global central bank you'd presumably need) very difficult to manage and a disaster.

The euro had issues for almost the first two decades of its existence even with the smaller national and economic differences between the countries of Europe! Now imagine if instead of Greece you had some of the less stable economies of the developing world. Not sure if would do them any good to be yoked to the most advanced economies or vice versa.
I mean if we're talking pie in the sky things like a universal currency why not imagine a post-capitalist social order sans currency in the first place?

Reply 13

Original post
by Saracen's Fez
I think we would soon find that the economies of different countries are very different and that makes a global currency (and the global central bank you'd presumably need) very difficult to manage and a disaster.
The euro had issues for almost the first two decades of its existence even with the smaller national and economic differences between the countries of Europe! Now imagine if instead of Greece you had some of the less stable economies of the developing world. Not sure if would do them any good to be yoked to the most advanced economies or vice versa.

It would be interesting if there were then currencies based on the developmental stages of countries e.g whether it was an AC, EDC or LIDC or even if there was a cut off point/ evaluation system put in place (although that would be very restrictive)

I suppose yes, those are definitely drawbacks

Reply 14

Original post
by artful_lounger
I mean if we're talking pie in the sky things like a universal currency why not imagine a post-capitalist social order sans currency in the first place?

is that a proposition to switch back to when trade was used like in the Bronze Age with like oh I'll take some milk if I give you eggs that sort of thing? I mean technically money is a form of trade its just a universally recognised one
Original post
by daisy.ch2
is that a proposition to switch back to when trade was used like in the Bronze Age with like oh I'll take some milk if I give you eggs that sort of thing? I mean technically money is a form of trade its just a universally recognised one

"Universally recognised" is I think too strong an assertion - gift economies do exist among certain cultures.

In any event I'm not proposing anything specifically beyond pointing out if we're suggesting the world be proverbially made of pudding perhaps one can consider a world where there's something entirely new replacing the current system.

Reply 16

Original post
by artful_lounger
"Universally recognised" is I think too strong an assertion - gift economies do exist among certain cultures.
In any event I'm not proposing anything specifically beyond pointing out if we're suggesting the world be proverbially made of pudding perhaps one can consider a world where there's something entirely new replacing the current system.

fair enough, would you know of any to quote?
ah I see, well if you had to design said new system do you have any idea of how you would do so?
Original post
by daisy.ch2
fair enough, would you know of any to quote?
ah I see, well if you had to design said new system do you have any idea of how you would do so?

Not offhand, it's a big area of study in anthropology though - have a search around for books on gift economies in anthropology sections :smile:

I wouldn't know, it'd invariably involve such technological advancements as to be beyond my ken (much as would a universal currency in your example).

Post-scarcity and other "economic" systems are common topics in speculative fiction though, so lots to explore in that front! The Evitable Conflict by Isaac Asimov talks a bit about one indirectly for example.

Reply 18

Original post
by artful_lounger
Not offhand, it's a big area of study in anthropology though - have a search around for books on gift economies in anthropology sections :smile:
I wouldn't know, it'd invariably involve such technological advancements as to be beyond my ken (much as would a universal currency in your example).
Post-scarcity and other "economic" systems are common topics in speculative fiction though, so lots to explore in that front! The Evitable Conflict by Isaac Asimov talks a bit about one indirectly for example.
Oh lovely, I hadn’t heard of that section before but I’ll have a look around.
That book sounds interesting I shall have to check that out!

Reply 19

Yes, Bitcoin.

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