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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The problem with single world currencies is the problem Greece had when it joined the Euro.
Before that, it had the Drachma. Drachmas could only be spent in Greece. That meant that any drachma that left Greece would eventually come back. If someone bought dollars for drachmas, the seller would only agree to that deal if they knew or believed that in the future they would either need to buy something in Greece, or someone else would want to and would therefore want to offer dollars for those drachmas. If Greece isn’t producing things people want, they might need to accept less dollars for those drachmas.
But if there’s a single currency and Euros leave Greece, and Greece isn’t producing things people want, then those Euros are now *gone*. If more go out than come in, then steadily the supply will drain away and never come back. Result: the mess that happened a few years back.
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