Why do we have different equivalents of a “dollar”? Who decided that different currencies would exist and would be worth what they are? Why can’t we have one currency used globally?
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One currency for the world would cause a lot of issues. Governments like having some control over their currency in order to combat inflation and stimulate the economy.
For example if your country is in debt and economy is stalling you want to print more money to devalue your currency, but you should do the opposite when inflation is too high. Getting all countries to agree on a strategy is impossible, since they have different needs.
And noone decided that. Different countries created their own currencies independantly from each other. It originally started as coins with just a print that your local king pinky promises you that it contains this much gold. But slowly we discovered it works without gold too if you pinky promise not to print new money too fast.
And the difference in value depends on the ratio “number of available currency versus number of things that you could buy”. Prices evolve until everything is sold and and noone who would want to buy more has money left. I.E. daily income and daily production must balance out due to the market.
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