eli5: Why can’t there be just one currency in the whole world?
In: Economics
Initially it would work fine, local prices would adjust to match the value of the new currency. Where you get problems is if a country runs into economic hardship, it can no longer devalue its currency to try and boost exports. Additionally, if the global economy gets into trouble, rich and powerful nations may demand changes to the currency that will help them, but hurt smaller poorer countries
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