like the fact that $100 in jamaica is like $10 here & etc.. why couldn’t we all use the same currency? or not even the same currency specifically but like have $10 here be the same thing as $10 in canada or $10 in africa etc etc.
In: Economics
I don’t think you are going to find a very satisfying ELI5 to this question. The real answer has to do with the idea that different countries have different systems of government, different education levels, different levels of productivity, different levels of industry, and so there is a benefit to having countries with their own economies where currency helps track how money flows between those different economies.
If there was only one currency there would really only be one global economy and that would make it very difficult to figure out how much an apple should sell for in Guatemala and why that price should be so drastically different from New York. You would naturally want apples to flow out of low price areas to high price ones but that would mean Guatemala doesn’t get any apples. We don’t want that outcome.
It is a horribly complicated question.
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