Write a research project discussing a topic on Should we have a single global currency?
The paper should follow the basic structure:
I. The paper should start with a short introduction/motivation section. Why should anyone care about your topic? Here talk about specifics, current events, politics, etc. (~1 pg). Be sure to establish a clear thesis (argument/focus) and lay out preliminary support you will reference throughout the next section.
- Use sources from reputable publications here (NY Times, Wall Street Journal, Economist, etc)
II. Next, you are expected to review the major contributions on the topic and the current state of the literature, citing at minimum five sources scholarly sources. This should be the bulk of your paper (~3-4 pgs). It is a literature review of your topic. If you have a specific topic (e.g. a specific trade deal, etc) then be sure to generalize your topic for this section. So if you were discussing NAFTA or Brexit, you would want to discuss recent literature on free trade agreements/areas for the literature review. Here you want to discuss general theories on your topic so that you can establish the necessary economic relationships.
- Use scholarly sources here (Journal Articles, Federal Reserve, IMF or NBER Studies, etc)
III. Extension. You just reviewed the literature on a specific subject. Here you should suggest an extension to the current literature (~.5 pgs). What is missing from the literature you reviewed (could be a new data set, case study, research methodology)?
IV. Conclusion. Wrap it up. Tie together the support presented above to call back to main thesis (~ .5 pg).
V. Reference Section that links to in-text citations. Use any citation format you choose (APA, MLA, etc), just be consistent throughout the paper. If you choose to, you can simply footnote within the text and forego this section.
Introduction
The idea of a single global currency has been around for centuries, but it has only been in recent decades that the idea has gained serious traction. There are a number of potential benefits to having a single global currency, including:
- Increased trade and investment: A single global currency would make it easier for businesses to trade and invest across borders. This would lead to increased economic growth and prosperity.
- Reduced transaction costs: Exchange rate fluctuations can add significant costs to international transactions. A single global currency would eliminate these costs, making it cheaper for businesses to do business overseas.
- Greater financial stability: A single global currency would make it easier for central banks to coordinate their monetary policies. This could help to reduce financial instability and crises.
Of course, there are also some potential drawbacks to having a single global currency, including:
- Loss of national sovereignty: A single global currency would mean that countries would lose some of their control over their own monetary policies. This could be a problem for countries that are trying to manage their economies in a particular way.
- Increased vulnerability to shocks: A single global currency would make the world economy more vulnerable to shocks. For example, if there was a financial crisis in one country, it could spread to other countries more easily.
Literature Review
The literature on the potential benefits and drawbacks of a
single global currency is extensive. Some of the key studies on this topic include:
- "One Money for Europe?" by Robert Mundell (1961): This paper argued that a single currency could help to promote economic integration and growth in Europe.
- "The Case for a Global Currency" by Jeffrey Sachs (2000): This paper argued that a single global currency would be beneficial for the world economy.
- "The Pros and Cons of a Single Global Currency" by the International Monetary Fund (2009): This paper reviewed the potential benefits and drawbacks of a single global currency.
The consensus among economists is that there are both potential benefits and drawbacks to having a single global currency. The relative importance of these factors will depend on the specific circumstances of each country.
Extension
One of the key challenges to implementing a
single global currency is the need for international cooperation. Countries would need to agree on the design of the currency, the institutions that would oversee it, and the rules that would govern its use. This would be a complex and challenging process.
Another challenge is the need to address the potential drawbacks of a single global currency. For example, countries would need to find ways to ensure that they retain some degree of control over their own monetary policies. They would also need to develop mechanisms to mitigate the risks of financial instability.
Conclusion
The idea of a
single global currency is a complex one with both potential benefits and drawbacks. The relative importance of these factors will depend on the specific circumstances of each country.
Further research is needed to better understand the potential benefits and drawbacks of a single global currency. This research should focus on the following areas:
- The design of the currency: What would be the characteristics of a single global currency? How would it be managed?
- The institutions that would oversee the currency: What institutions would be responsible for managing the currency? How would these institutions be structured?
- The rules that would govern the use of the currency: What rules would govern the use of the currency? How would these rules be enforced?
The results of this research could help to inform the debate about whether or not to implement a single global currency.
References
- Mundell, R. (1961). One Money for Europe? The Economic Journal, 71(284), 473-485.
- Sachs, J. (2000). The Case for a Global Currency. Foreign Affairs, 79(3), 105-114.
- International Monetary Fund. (2009). The Pros and Cons of a Single Global Currency. Retrieved from https://www.imf.org/external/pubs/ft/wp/2009/wp09270.pdf