Single World Currency - Macroeconomic Ramifications and Financial Market Aftermath

The only two ways of arriving at an economic system without currency reserves is to either introduce a single global currency or a floating rate mechanism, fully functional. Economies in the light of this era's financial crisis have dabbled with the idea of a single world currency for many years. What remains to be seen is whether efforts are really worth pursing after a common currency for the entire world.

No more currency crises, no reserves of foreign assets and no balance of payment problems. An idyllic world and an idyllic single global currency has been the center of discussion long enough. Some trillions of money traded everyday and hundreds of thousands of companies making losses or profits in the stock markets would all come to a stop with the disappearance of a market altogether, claim economists. International trades and businesses would associate themselves with stability as a result of absence of any currency fluctuations. Elimination of currency trading costs, lesser investment risks and other advantages of a single world currency have been noticed from the implementation of the Euro as a common currency at the beginning of this decade. But what comes as stark apprehension is the structuring of monetary policies in each economy.


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