posted on Jan, 24 2005 @ 07:49 PM
As the resident businessman (currently a student, Bachelor of International Business) I have quite a bit to say about this discussion, even though
ironically I despise business with a cold-hearted passion (but that's another story, I'm afraid).
First, a one-world currency would effectively result in a one-world government - if not immediately, then soon after such a hypothetical amalgamation.
This is simply because everything relies on money, and that includes things like politics and defence. When you have one currency (and by assumption,
free trade), boundaries between governments will begin to smear because of the free flow of resources (factors of production).
Second, a few things about vincere7's post. Hmm...yuan and the yen would not merge any time soon, because China and Japan are very very different. As
different as two countries could be, except for some basic language and cultural overlaps. As well, they don't particularly like each other. The
Japanese economy is now locked in what seems to be perpetual stagnation (due to stubborness to change, mostly), and China is in a remarkable (and
potentially globally catastrophic) run-away economic growth.
As for Russia and the EU, that's a very interesting question! I once asked a professor that myself. The answer I got is that the world right now
would never allow Russia to enter the EU, because that would make the Union far too powerful, upsetting whatever global balance we have left.
The interesting thing about a world currency is that it would make capitalism as we know it obsolete. We rely on a complicated system of currency
differences and tariffs for trade. Some currencies are weaker than others, and this balances out the trade (import/export) balance in the world. With
one currency, you would have a global free trade area, making this system obsolete. It's very unlikely such a system could work with current
population levels (too high) and production levels (too low).
Indeed, one world currency is unlikely to exist in the world we're living in right now. One thing that would result in one world currency and make it
viable is a global catastrophe, whether climatological or human-induced. Both of these possibilities seem more likely every passing day. I think,
either way, by the time we have a one-world currency, terms like "EU" and "yen" will be studied by historians rather than economists.