Andres
Páginas: 3 (561 palabras)
Publicado: 22 de octubre de 2012
THE FUTURE OF INTERNATIONAL MONETARY SYSTEM
The international monetary system is a topic that encompasses a wide range of issues reserve currencies, exchange rates, capital flows, and theglobal financial safely net, among others. Therefore, a change in the international financial and monetary system must adapt to the global economy's upcoming challenges, by laying down the foundations forrenewed world macroeconomic and financial stability.
In the future, the change will be characterized by increasing globalization of markets and increased interdependence of countries, the goal isto reduce the sources of instability and deal more effectively the volatility, in this way preventing next crisis.
This essay defends the proposal for the creation of a universal currency foreveryone. The idea is that by having a set currency, it can stabilize global market, to avoid problems such as inflation, growth of massive deficit and other problems related to the exchanging of currency.According to The Global Finances, an article written by Gordon Platt: “The benefits from a universal currency would be enormous, An estimated $400 billion a year in foreign-exchange transactioncosts would be eliminated. There would be no currency fluctuations or currency crises. There would be no need for central banks to hold foreign currency reserves, which hang like a sword of Damoclesover the markets as central banks and sovereign wealth funds shift their massive holdings.”
Besides, following the example of the success of the euro, with a single global currency, pricesworldwide would be denominated in the same unit and could be easily compared. Trade between countries would be as simple as interstate commerce in the United States. Global travelers would not have to worryabout changing their money and paying fees for this inconvenience.
Having a multitude of currencies means that no one can foresee that a currency will have value in terms of another, in a few...
The international monetary system is a topic that encompasses a wide range of issues reserve currencies, exchange rates, capital flows, and theglobal financial safely net, among others. Therefore, a change in the international financial and monetary system must adapt to the global economy's upcoming challenges, by laying down the foundations forrenewed world macroeconomic and financial stability.
In the future, the change will be characterized by increasing globalization of markets and increased interdependence of countries, the goal isto reduce the sources of instability and deal more effectively the volatility, in this way preventing next crisis.
This essay defends the proposal for the creation of a universal currency foreveryone. The idea is that by having a set currency, it can stabilize global market, to avoid problems such as inflation, growth of massive deficit and other problems related to the exchanging of currency.According to The Global Finances, an article written by Gordon Platt: “The benefits from a universal currency would be enormous, An estimated $400 billion a year in foreign-exchange transactioncosts would be eliminated. There would be no currency fluctuations or currency crises. There would be no need for central banks to hold foreign currency reserves, which hang like a sword of Damoclesover the markets as central banks and sovereign wealth funds shift their massive holdings.”
Besides, following the example of the success of the euro, with a single global currency, pricesworldwide would be denominated in the same unit and could be easily compared. Trade between countries would be as simple as interstate commerce in the United States. Global travelers would not have to worryabout changing their money and paying fees for this inconvenience.
Having a multitude of currencies means that no one can foresee that a currency will have value in terms of another, in a few...
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