Posting # 1: Concept and Euro experience
The economies of few countries are affected internationally over the past few years. As the economy of world is integrated and it works as a system, few things should be aligned. Therefore, the leaders and economists have proposed few changes in the financial system globally. The most important of all is the concept of universal currency system. As all the operations of countries are interlinked in global economy, the model of one world one currency is worth seeing. Euro experience is the best example of this model. All the member countries of European Union use same currency and this has a favorable impact on their economy. It keeps these nations away from the issues of inflation trends and market disturbance.
Posting #2: Modality and applicability
The implication of one world one currency model is considered impractical in worldwide scenario. It is better to have a mixed approach. It may be better for some areas like Europe, while implementing it throughout the world can raise issues of money supply, printing and management. The recession and other economic trends will also become difficult to manage. The acceptability of this model is also not high. There are few nations that will have advantage on the expense of others so all countries are not willing to accept this model. Like flag, currency is another important distinction for a country that differentiate economies.
Posting#3 Impact on U.S. Economy
USA is considered a strong force in international economy. Similarly, US currency is dominant in many areas of the world and most of the transactions are carried out in dollar payments. US economy is spread globally and the change in world currency will have a great impact on the overseas businesses of American companies. This will require more flexibility in operations and new strategies for businesses.
Works Cited
Daniels, Joseph P and David D VanHoose. Global Economic Issues and Policies. Second Edition. 2011.
