Is a single currency for all the world a good idea?

A buddy of mine and I were talking about our favorite conspiracy theories.  Of course, the “one world government” deal is the biggest and bestest of them all.

But it led to an economics questions neither of us are skilled enough to answer:  Would a single currency worldwide be good or bad?  Just imagine a worldwide EURO.  How would that work.  OR, does the vary disparity of currency values due to all the different financial systems  act like a shock absorber for the extremes in the global econmy as we have seen in the last 24 months?

PLEASE comment if you are a economics dweeb.  Great posts (for or against) will be featured on the blog proper….

2 thoughts on “Is a single currency for all the world a good idea?

  1. herb

    this should help answer the question

    http://en.wikipedia.org/wiki/Optimum_currency_area

  2. Tony

    I don’t know, Mark. Being able to manage a currency is at the very core of what a country is about. By giving up that power, governments give up a capacity to control inflation, etc. That the EU has been successful in doing this so far, is a great tribute to reams of treaties, etc., which restrict the capacity of each country to exercise such sovereign rights. Suddenly throwing this responsibility open to 190+ countries would be a daunting task, indeed, and probably not that practical in the short run at least.

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