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It's not that commerce is easier: currency exchange is pretty frictionless nowadays. It's that the value of inputs and outputs, which are critical to running a
by atlantic 3y ago
It's not that commerce is easier: currency exchange is pretty frictionless nowadays. It's that the value of inputs and outputs, which are critical to running a company doing part of its business abroad, or buing inputs from abroad, is much easier to calculate without having to account for exchange rate fluctuations.
- ethbr0 3y agoI'd put it is that conducting international trade in a single currency is more systemically stable. Iow, the currency's ubiquity and total amount buffer shocks to the system, in a way that multi-polar currency use could not tolerate. If some folks decide to break {insert smaller international currency here} because they think it's overvalued and they don't use it, they probably have the means. But it's difficult to tip over a world-economy sized apple cart. And a single trade currency also mostly keeps nation-states out of the currency warfare game, because it's a gun pointed back at their head too.
- GTP 3y agoThis is what I meant by saying that it makes commerce easier.