3 ms·
I think 3 good, (but not necessarily main reasons) to NOT have state currencies are; 1)It will add a big cost to the economy of doing business. Every time you
by Gustomaximus 15y ago
I think 3 good, (but not necessarily main reasons) to NOT have state currencies are;
1)It will add a big cost to the economy of doing business. Every time you try and do business between states you will have to change money and some banker will take a small cut on the transaction. And this will add up large amounts it cost the economy. This is a large reason why Europe went to the euro.
2) We have seen how some states manage their affairs. If they are in control of currency they have the potential to make an even bigger mess of things. Bad management will end up with a Zimbabwe type hyper inflation. This risk is reduced in a larger centralised organization... though arguably the US gov is doing this too much right now...
3) It is symbolic of unity.