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Currency itself is an abstract concept. There are many reasons currencies are associated with nations (instead of just cities or other smaller economic regions

Currency itself is an abstract concept. There are many reasons currencies are associated with nations (instead of just cities or other smaller economic regions). The most important reason is that currencies are under the control of some sort of central bank (the FED in the US the ECB in the eurozone). Because the fed controls the supply of money and the fed is a national institutions it makes sense that the fed would be attempting to do what it thinks is best for the nation (and therefore the people living in that nation). One of the major reasons currencies fluctuate between different nations is due to changes in the money supply (which is obviously related to economic production and the intervention of the fed). So having currencies associated with sovereign states makes a lot of sense.

burgerbrain 15y ago
The concept of nations is a relic though. We're not under threat of roaming Hun tribes or whatnot. The exclusive modern purpose of a nation seems to be to have a currency, and the purpose of the nationally administered currency seems to be to maintain the nation... Seems terribly circular to me. If we admit that geographically defined nations are silly then I don't see any reason why we can't just let people, businesses, or perhaps even entire cities, choose which currency they wish to subscribe to.
- justincormack 15y ago
  They do when it matters. Many countries at various times have used the dollar as a non official but widespread currency, eg much of south america, and Russia.
- lukesandberg 15y ago
  "The exclusive modern purpose of a nation seems to be to have a currency" That is incorrect. The purpose of a nation is manifold, nations provide a lot more than just a currency for example: rule of law, public services (roads, fire service), judicial system, safety regulations, an open and efficient marketplace. Currency is a means to some of these ends not a purpose in and of itself. Now like everything else in life not all of these tasks are always well executed and thats why governments do things like change laws and policies and provide for mechanisms such as the courts and a free press. I believe you are taking a very narrow view of what a nation is and what it (strives) to provide.
  - burgerbrain 15y ago
    In almost all of these cases a State or local government is providing those things or could easily provide those things. Very very few things make sense to govern at a scale the size of the continental US.
    - burgerbrain 15y ago
      Ok, I'd love to hear this. What things make sense to govern at a quater-dozen timezone scale?

burgerbrain 15y ago

The concept of nations is a relic though. We're not under threat of roaming Hun tribes or whatnot. The exclusive modern purpose of a nation seems to be to have a currency, and the purpose of the nationally administered currency seems to be to maintain the nation... Seems terribly circular to me. If we admit that geographically defined nations are silly then I don't see any reason why we can't just let people, businesses, or perhaps even entire cities, choose which currency they wish to subscribe to.

justincormack 15y ago
They do when it matters. Many countries at various times have used the dollar as a non official but widespread currency, eg much of south america, and Russia.
lukesandberg 15y ago
"The exclusive modern purpose of a nation seems to be to have a currency" That is incorrect. The purpose of a nation is manifold, nations provide a lot more than just a currency for example: rule of law, public services (roads, fire service), judicial system, safety regulations, an open and efficient marketplace. Currency is a means to some of these ends not a purpose in and of itself. Now like everything else in life not all of these tasks are always well executed and thats why governments do things like change laws and policies and provide for mechanisms such as the courts and a free press. I believe you are taking a very narrow view of what a nation is and what it (strives) to provide.
- burgerbrain 15y ago
  In almost all of these cases a State or local government is providing those things or could easily provide those things. Very very few things make sense to govern at a scale the size of the continental US.
  - burgerbrain 15y ago
    Ok, I'd love to hear this. What things make sense to govern at a quater-dozen timezone scale?