Explain the concept of different currencies and why there is no singular world wide currency/ what are benefits and downsides of having a world wide currency?
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You know how every couple months there’s a bunch of stuff on the news about how the Federal Reserve might be changing interest rates? Setting interest rates is the most important single tool that the government has to fine tune the economy and their ability to do so requires the federal reserve to be able to print (and destroy) basically unlimited amounts of US currency.
Having a single world currency would make trade easier, but it would mean putting this very powerful tool in the hands of some kind of international body. There are a bunch of political reasons (both good and bad) why this is unlikely to happen.
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