Economic Advantages and Disadvantages of a One Global Currency

Economic Advantages and Disadvantages of a One Global propertyIntroductionThe recent history of up-to-dateness transform swans includes 3 huge changes beginning from the end of the XIX to the end of the XX century. Pure gold standard has been the basis for trading among nations during 1879 and 1914 (Abdel-M unrivaledm, n.d.).At the beginning of World War I, this standard ceased to exist and in 1920 countries permitted greater replacement rate flexibility (Jereissati, 1999), which however, did not last long and after(prenominal) the end of the World War II the Bretton-Woods frame has been implemented. This standard has been created as a result of numerous meetings between the World War II winning states with the final conference taking place at the Hotel in Bretton Woods, New Hampshire. The standard took the name of this last conferences venue (Grabbe, 1996, as cited in Tucker, 2008).In August 15, 1971 Ric hard Nixon in his speech announced that the price of dollar mark res ult be no longer fixed against gold. This has put an end to the Bretton-Woods brass and has set-off a new era in international financial system. The briny feature of this new system is that it is neither a pure gold standard nor a pure exchange rate float, but rather a system in between these two extremes (Meese, 1990). This standard exists until today and has been strongly undermined during the latest monetary crisis. In this respect, the idea of having a unmarried globular silver is widely discussed as an alternative monetary system. This literature review outlines advantages and disadvantages of a ace global silver.The individual(a) Global currencyThe Concept of a hit Global fundsSingle global currency, as one can see from the example of Euro, signifies that countries, where this currency would be implemented, should be the members of a monetary coalition with one fundamental bank, common currency, a coherent and binding financial policy. Scandinavian Currency Union (SCU), which included Denmark, Norway and Sweden, established a common currency unit, although central banks in each of those countries retained control over monetary policy and did not experience significant loss of independence (Bergman, 1999).The single global currency is a much much complicated issue. History recognizes a lot of monetary unions of different size, both formal and informal. notwithstanding the most booming example came from the European Union, which is the Economic Monetary Union (EMU). There atomic number 18 also two proposed single currencies, which potentially may come near the Euro. They are the GCC monetary union currency and the Asian Monetary Unit.Economic Advantages of a Single Global CurrencyThe advantages of a global currency are as follows. First of all, single currency allow for blow over transaction costs, which are linked to international financial operations. This will affect both ordinary citizens who excogitate to spend money abroad and mu ltinational corporations undertaking international transactions. Different currencies create a lot of inconveniences and barriers. Exchanging one currency for another always involves currency exchange fees, as banks, which provide such currency exchanges, require commissions for their services. In the scale of countries or even monetary unions such expenditures on currency exchange fees may reach high amounts. By eliminating the need for currency exchange the monetary unions may that resources (Buiter, 1999, as cited in Bonpasse, 2008). For instance, the European Commission (EC) has estimated that collectable to a single currency across the European Union 13 to 20 billion of Euro were surrenderd per year (Grauwe, 2007). unless the difference between the currencies exchange rates becomes an obstacle for a free flow of trade. As the barrier of different currencies will disappear, the number of international transactions will increase. Bordo and James (2006) verbalise that neighbo ring countries, which are members of a common monetary union, tend to trade more frequently with each other. In a study conducted by Micco, Stein, and Ordonez (2003) they found out that trade between EU members increased by 8 to 16%, after EMU was created (as cited in Lane, 2006)Currency risks nowadays are one of the major disadvantages of the modern international financial system. Everything, ranged from a natural disaster to terroristic attack, may affect the value of the currency and as a result travail loss. Foreign investors, as well as stock holders, set about to hedge their risk, which also demands additional expenditures. Implementation of the single global currency will eliminate the risk of loss, due to currency fluctuations. Moreover Bonpasse (n.d.) rases out that the adoption of a single global currency will save 400 billion of US dollars annually in foreign exchange transaction costs, which come from trading 3.8 trillion US dollars each trading day.Currency misalig nment is a process when central bank increases or decreases the value of its currency against another for different purposes. The most known cases of currency manipulation are the cases of China and Japan. Both countries artificially undervalued their currencies, which do their exports more competitive. As the value of Yen and Yuan decreases, the prices on Japanese and Chinese products will consequently fall. This has created a great advantage for Japanese and Chinese products in the food market. Today the low value of these currencies, which has nothing to do with the real situation, has created huge difficulties for the economies of Europe and USA. Japan and China, based on all criteria related to the IMF definition, withstand been persistently manipulating their currencies to gain an unfair competitive advantage (Preeg, n.d.). Obviously with a single global currency, currency manipulation by individual countries would be impossible. Moreover there will be no need of such kinds of unfair methods.It is easy to perceive that problems of contemporary monetary system are currency rate fluctuations. As most of the currencies are free and are not fixed to any value, there is a huge possibility for currency speculations. For instance, speculative opportunities of FOREX market may have a great impact on economics of countries and their financial situation. The speculative attack on the Swedish Krona in 1992 is a perfect example. The Central Bank of Sweden had to raise the interest rate of its currency which caused devaluation of the Krona. Receiving income from currency speculations is getting money out of nothing. The next benefit from implementing a single global currency will be the elimination of currency speculations existence. The single global currency will present a different choice for speculators if they appetency to speculate, they will need to choose another commodity, as the money of the tribe will no longer be for sale (Bonpasse, 2006).Another pro blem of todays financial system is international reserves or foreign exchange reserves. As the possibility of a currency crash is high, due to currency risks and currency speculations, every country holds assets in various foreign currencies, which are considered as reserve currencies. Mainly it is the US dollar, not so often it is the Euro or the UK pound. However after implementing the single global currency, this hedging method will be unnecessary. As the central bank will abandon the foreign exchange reserves, it will save a considerable amount of money. In 1992 the European Commission estimated that the future Eurozone members might be able to reduce their total international reserves by one-half or $200 billion (Bonapasse, 2008).Disadvantages of a Single Global CurrencyTurning to disadvantages of a Global Currency, the most negative side of it is that countries will lose the office to control their financial policy. Today every country is able to determine their monetary poli cy independently. In order to have an specify on the economy, nowadays central banks of every country through influencing exchange rates and adjusting interest rates, may increase or decrease economic activity. However in case of a single global currency, changes in a local countrys finances, will demand changes in the global scale. So with the Global Currency countries will lose flexibility in their monetary policy. A uniform policy template to provide macroeconomic stability, will constrain a countrys ability to make independent interest rates and exchange rate policy (Bonpasse, as cited in Wenzel, 2007, p17).Another significant disadvantage of having a Global Currency is connected with the difference in economies of different countries. While there are only a few developed states with strong economies, the rest of the countries of the world have rather weak economies, for instance the majority of African countries or some southwestern American countries. In the world with a com mon currency, the weak economies shall snap down the rest, more well off countries. If one of the members will face a crisis, the others will have to spend their resources in order to stabilize the situation. A perfect example could be the debt crisis, which recently has occurred in Greece. While the EU/IMF bailout package wasnt enough, Germany had to loan about 110 billion Euros in order to save the country from bankruptcy. In addition the crisis had a chance to spread to other countries, as it reduced confidence in the economies of other EU members.Conclusion Is The Single Global Currency Implementable?Global Currency as a financial system has been frontmost mentioned back in the end of XIX century. The reasons why this system still has not been implemented are rather social and political, than economical. The first obstacle is national identity. Most of the nations consider their currencies as a national symbol, compare to the flag and the anthem. Obviously people will hardly discard their own national symbol, their source of pride. Some people are tempted to view such symbols as they do their flags and national constitutional documents, and the loss of such symbols can be considered as a national loss (Bonpasse, 2008). Just imagine how hard it will be for Americans to abandon dollar and unsay a currency with absolutely neutral name and with neutral images and signs. In case of a Global Currency it should be absolutely neutral, as Euro is.Political barriers also should be taken in to account. In the conditions where political tensions between two countries are possible, implementing a single currency is a huge problem. For instance, it is difficult to imagine how USA, Democratic Peoples Republic of Korea and Iran, countries which have experienced significant political tensions, would negotiate in order to accept a single currency. Or it is difficult to say how it is going to work between countries which are in state of war like North and South Korea. In addition, due to political discords, such issues as supply and printing of the Global Currency would be problematic. As an independent central bank is demanded, the first dispute within the countries would be about the location of the central bank. Every member of the global monetary union would try to pull the blanket over. It is hard to believe that after gaining membership to the global monetary union, countries would not start attempting to gain greater influence on the central bank and hence the monetary policy.Though the process of globalization seems to be unstoppable, we are still far away from being even close to a Global Currency. In my point of view, implementation of the single global currency can be compared to the legends about Eldorado or dreams of Utopia. There is no doubt that Global Currency has more benefits than costs. The loss of control of the monetary policy is a really low price for the other advantages of this idea. Throughout the history mankind tried to g ive fork up to a global government. League of Nations and UN could serve as examples. Esperanto as a worldwide language also has been a great proposal, which could simplify the understanding between nations. But both concepts were not successful up to this time. Unfortunately the single global currency is an idea of such type. Although globalization and the Internet did bring people around the world closer to each other, maybe we are still to different to buy food with the same money. Maybe social and cultural differences frolic much bigger role in our life, than we think. USSR made an effort of erasing these differences, but where is the USSR now?

Stress In The Workplace Essay example -- Workplace Health and Safety

Stress by definition is an interaction between individuals and any source of submit (stressor) within their environment. Employment can be an exciting challenge for many individuals it can also be a tremendous source of stress. (Long, Bonita C.) Stress in the work place can cause many individuals harm emotionally and physically. Several reasons for the intense amounts of stress are too many demands from co-workers, supervisors constantly eupnoeic down your back, elevated noise levels in the work place, lack of knowledge for a particular position, co-workers not upholding their responsibility to help with the task at hand, and favoritism. drop of promotional opportunities at your place of employment, in spite of the fact that you go that extra mile will contribute to stress. Some effects that can emergence from stress in the work place are poor job performance, low morale in the office, and insalubrious employees. Reciprocally, elevated stress levels in an arranging are associat ed with increased turnover, absenteeism sickness, and reduced productivity. At a personal level, work stressors are related to depression, anxiety, general mental distress symptoms, heart disease, ulcers, and chronic infliction (Sauter, Hurrell, & Cooper, 1989).A stressor is the object or event that the individual perceives to be disruptive. Stress results from the perception that the demands exceed ones capacity to cope. (Wiersm...

Californias Direct Means of Democracy Essay -- Prop 19

atomic number 20 is a democratic republic consisting of three branches of government. The first is the executive branch, i.e. the governor and a group of elected constitutional officers. Second is the judicial branch which consists of the Supreme Court of California and the various local courts. Officials are appointed by the regulator and ratified in the next general election. The third branch of government in California is the legislative branch. It is a bicameral body which includes Californias Senate and Assembly. The Assembly makes up the lower house of the California State Legislature and consists of eighty members, one representative from each county, who serve for up to three twain year terms. There are forty state senators who are able to serve up to two four year terms. Each senator represents approximately 846,719 Californians. California practices direct democracy which is a method of governance in which any citizen of a state wishing to participate holds sovereignty. It is a political system that allows citizens to flip constitutional laws, put forth initiatives, referendums, and suggestions for laws. Also, they can give institute limitations for removal on the states executive branch official. These means of governing is a clear contrast representative democracy which state officials, elected to office through popular vote, hold the power to make legislation. The framers of the United States did not regain direct democracy as a viable option of governance because it made it easy for the majority to impose their will over the minority. Also, it gave the newly organise legislative branch less power. In turn, the founding fathers instituted a representative democracy in the form of a constitutional republic. This allowed the s... ...011 48-49. Print. California. Initiative and Referendum Institute. University of Southern California, n.d. Web. 10 Feb. 2011. . California Ballot Propositions - November 2nd 2010 . California Choices. California Ch oices, 7 Feb. 2011. Web. 10 Feb. 2011. . Kesler, Charles R. Direct majority rule In California. The Claremont Institute For Studying Statesmenship and Political Philosophy. The Claremont Insititute, 2009. Web. 10 Feb. 2011. . Stern, Robert M. Democracy by Initiative Shaping Californias Fourth Branch of Government. Health Vote. California HearthCare Foundation, n.d. Web. 10 Feb. 2011.

Analyzing the character of Reverend Hale :: English Literature

Analyzing the character of Reverend HaleMr Reverend Hale had a very controversial role in moving the story tothe end how it had happened. Beside the otherwise three main charactersMr Proctor, Elizabeth and Abigail he was fourth biggest person whoinfluenced the happenings the most. However, while the main charactersplayed a kind of a passive role, he always treasured to be in the middleof attention. He was a very proud man, but nave as well. He thoughthat himself is an expert in the sable world of witches. atight-skinned, eager-eyed intellectual. This is a beloved errand forhim on being called here to ascertain witchcraft he has felt thepride of the specialist whose unique intimacy has at last beenpublicly called for.This bad self-conscious brought to attention the witchcraft. The roleof his character is a good example how a not completely trustyperson can mislead a whole community. Mr Hale played a crucial part instarting the witch trials and initiating the madness in the town o fSalem.Though, he was the one who accused the girls of being witches andtrying to get their testimony, he was always seeking the truth. He didnot intend to make such a huge conflict between the villagers. Abigailused his willingness of believing in mystic creatures like witches,she realized that he can be misled easily. Moreover, through his persuade personality everybody in the town can be misled, too.Therefore, the madness was partly happened due to his intervention,because the others should have not listened or believed to him.Hales goodness and naiveness was shown through his enlightenment. Afterhe had realized his wrong decision, he strived for persuading all theinnocent citizens to confess cooperation with the evil that theyobviously had never done. He did not return into account the peoples