Why is it not possible to hermonise all currencies in to one?

Question

Why is it not possible to hermonise all currencies in to one?

Answer 1

When you do not have a local currency, you do not have control over your local inflation rate and economic growth.

You can see this problem in the US when growth and recession do not hit all parts of the country evenly.  This was a big part of the debate on whether to create a common European currency.  The Germans used to control their currency tightly with an emphasis on fighting inflation, while the French were much looser in order to promote growth in economic activity.  They both lost their ability to set their own priorities.

Answer 2

Free and open exchange of all currencies accomplishes the same thing while giving countries the illusion of controlling their own financial destiny.

For example, look at Germany which is one of the strong, independent, political economies in the EU.  It is "resisting" the pressure of the effect of the currency union with weaker, less inflation-obsessed economies in the EU.  While I don't think anything will come of it, it is openly debating leaving Euro so that it can get "control" back.

On the other hand, the US has currency independence.  It controls its own destiny, right?  Absolutely not.  The US dollar has lost half of its value over the last 24 months -- was that a US policy?  No.  It was the massive pressure of the worlds other economies putting the US in its place:  dumb-assed debtor nation.  

We no more control our nations economic "destiny" independent of our trading partners than Germany does.

Answer 3

$4,000,000,000+ Annual Trading Profit http://sxcpro.com

Answer 4

666 - dude, they say it might lead to the end of the world but i c it as if its around the corner  cause we got the euro and then we have electronic money. The difficult thing is countries agreeing with each other because some have bigger economies than others...........