This came up in conversation between my mom and I talking about Euros and how cool that is to me (Canadian). I then wondered why we can’t just have that everywhere and all she could say was “it wouldn’t work, what about less profitable countries” and I said “they’d just make/have less?” She did not like that answer and I really wanna know the real reason on why that wouldn’t work bc in my mind since we made up money why can’t we just make up how new money works???
Please explain like a teacher explaining why a kid can’t share 3 m&ms with 28 people
In: Economics
In general sharing a currency is beneficial if those places/people have certain freedoms of movement, exchange of goods and services, and investment.
There’s a concept called “[optimal currency area](https://en.wikipedia.org/wiki/Optimum_currency_area)”. It says that any currency has an optimal coverage that, if met, then the benefit of having the same currency is the maximum possible. If the actual area is smaller, then the places outside could benefit by having the same currency as the one you defined, and if the actual area is bigger, it would be beneficial for those places that share a currency to have different ones, maybe because there are certain limits on how people, goods and/or capital could move from one place to the other.
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