Despite rioting in the streets, the Greek parliament has passed a series of spending cuts after lengthy negotiations with private banks and the European Union. Even though the instability of the European economy is on the world’s stage, other countries like Turkey, Poland and the Czech republic will likely continue their efforts to join the EU and adopt its official currency. Adopting regional currencies like the Euro is typically attractive because it eliminates barriers to trade, increasing the flow of money between national economies.
What’s the Big Idea?
Are national currencies relevant in our globalized world or are they a relic of a political system which has not caught up with changes in transportation and communication technology? Smaller regional states like Panama, Ecuador and El Salvador have officially adopted the dollar while ‘spontaneous dollarization’ elsewhere is not uncommon: “More than half of the bank deposits in Latin America are denominated in US dollars.” Some say a global currency would promote prosperity like a global language by reducing (economic) misunderstandings.