Should Canada promote the creation of a world currency?

Question

Considering how much money money brokers make as middlemen just buying and selling money but not producing anything of economic value themselves, thus essentially making themselves parasites on society, profitting from other peiole's need to buy foreign currencies by marking up the price and taking a cut for themsevles, could we not make cut this waste by creating a world currency like the EU created the euro?

refurb · Answer

It's a little easier to create a common currency when you have an agreed set of principles on monetary policy.

RF

Jerz · Answer

Shouldn't we also do away with Wal-Mart and other retailers then? All they do is buy merchandise from manufacturers and sell it to the public at a profit.

The value a broker creates is ease of access and convenience. If I travel to Canada, I can buy Canadian dollars at the airport and don't have to go get some from the central bank.

kbulse · Answer

the same thoughts

AlexMBAApply · Answer

A world currency is basically the equivalent to the Gold Standard (i.e. all world currencies pegged to the price of gold, or simply using gold as currency just like the Middle Ages haha).

In theory it's possible, but individual countries then have zero control over monetary policy. This may not be an issue if each country's economy was 100% correlated (or near 100% correlation) with one another -- but it's not. Even in this worldwide recession, the impact on each country is different - some more severe than others (and also in different ways).

spgny · Answer

I think one day we will all be using PayPal with a PayPal currency........

AlexMBAApply · Answer

Well, given the bubble in asset prices of the past decade and a half we might as well be using Monopoly money...

Actually, from what I've read, a "world currency" is in the works at the IMF - which would be more akin to a weighted basket of currencies -- USD, Euro, Yen, and Sterling.

True to Fareed Zakaria's assertion, we are living in a post-American world.

Should Canada promote the creation of a world currency?

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