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
There’s no technical reason we couldn’t do that, but there’s a ton of political reasons why we can’t. The world is not unified enough to accept such a thing. Controlling currency confers a large amount of power to the group doing so. Look at the US sanctions on Russia, for example. Cutting off Russia from the international banking system is only possible because the US controls the dollar, which is used as the de-facto currency of trade in much of the international community. China is trying to position itself as an alternative to the dominance of the US dollar. Do you think that either country would accept giving up that (potential) power?
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