I'm putting it to you.
One of my professors is writing a paper about this and has asked me to assist him.
But I was wondering what you guys think?
Do you think a global currency would work?
Would it have prevented the financial crisis in 2008?
Will it prevent issues in the future?
Thoughts?
It absolutely would not have prevented the financial crisis. The issues that precipitated the financial crisis were avarice, excessive risk taking, lack of transparency, ignorance, and more avarice
Seems like a bad idea for the same reason that the Euro (as it is now) is a bad idea. Way too many different countries with different needs and wants in terms of monetary policy. Individual countries can't control the overall money supply which will cause some to overheat and cause some to lag behind more than if they had full control.
If you are asking whether its a good opportunity though, definitely do it, it seems like a really cool thing to do.
its impossible....
It's a stupid idea. Krugman won the Nobel for this stuff, read up on OCAs and NEG.
It's a stupid idea. And if Krugman is espousing it, then that's all the proof you need that it's a stupid idea, no further research necessary.
Krugman never espoused it. If you know so little about the body of work on the subject that you would argue he did, then you really should not comment on it. OCA and NEG is all about how a global currency would not work. Whether or not you respect his writing as a blogger and columnist, the fact remains that Krugman is one of the greatest economists of the current generation, and that you would be extremely hard-pressed to find a good economist who does not respect his work in international trade.
A global currency has been tried; that is essentially what gold standard I, II and III were. Refer to the monetary trilemma for reasons this can not work.
global currency is an aweful idea.
/thread
Thanks a lot for the opinions.
Some good stuff here.
Anyone of the opinion that it may work? Or even if you are not, hypothetically, would you see it working?
So is he writing a paper in favor?
If so, I'd tell that liberal professor to fuck off.
Haha. No, he isnt. He's open to suggestions, but seeing as he has two groups of 4 students total researching the topic, its bound to be a 'yes, no' conclusion' type.
In that case it sounds like a good opportunity to be quite honest. Go for it.
I mean, I just can't imagine how bored a professor would have to be to look at this. There is a monumental body of work on the subject; it has been, as I said, tried three times; there is a clear example in Europe right now how it doesn't work on even a small scale sans OCA. I simply don't see what more there is to be said on the subject. It's possible I'm missing something, but I doubt it.
Also, I don't really see it as a liberal v conservative issue; any economist on either side of the ideological spectrum will tell you it is a dumb idea. Their reasons may differ, but their conclusions will be the same. The people who I do see it appealing to would be those who think the gold standard was brilliant, and those people are generally conservative (or libertarian, if you prefer).
Being a Libertarian, we think more isolationist. So yes, some of us want a Gold Standard, for America.
Isolationism and libertarianism are philosophically incompatible, as isolationism allows for political barriers to interfere with the contractual relationships between consenting parties.
Also, you realize the most likely outcome for a gold standard would be to hand congress the keys to monetary policy, yes?
He mentioned it was in conjunction with UChicago, (Economics professor there) so sounded like too good an opportunity to pass up.
Drex, can you recommend any books that I ought to chase up or articles to read giving either perspective?
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