A single global currency would give us this problem, but on a completely global scale. Without this ability to control currencies, the only levers left for individual countries to control their economies would be things like taxes and capital controls (attempting to prevent the movement of money in and out).
Keeping this in consideration, why can't the world have one currency?
Because some countries take pride in using own currency than universal currency. But uniform currency all over the world eliminates the uncertainty of exchange rates. And interest rates and inflation will be minimum. When the demand for currency is more, that means value of currency is more.
Also, what are the advantages of having a single currency?
Benefits worldwide The scale of the single currency and the euro area also brings new opportunities in the global economy. A single currency makes the euro area an attractive region for third countries to do business, thus promoting trade and investment.
What are the advantages and disadvantages of having a single currency in the world?
Advantages and Disadvantages of a Single Currency.
- Eliminate exchange rate fluctuation.
- Reduced Transaction Costs.
- Price Transparency.
- Facilitate market expansion.
- A more stable currency.
- Prevent competitive devaluation by nation states.
What is the world's strongest currency?