Some initiatives or ideas count on direct acceptance. Then the problem is: how do we do it, is the project feasible? Other ideas might be feasible but count on resistance from the day they get announced. To me, a single global currency would fall in the second category.
I was just imagining how the financial crises would evolve when there was only one global currency and one central bank. It could have been better, but it also could have been worse.
In my opinion a single global currency is both not feasible nor desirable.
To start with the latter: it is not desirable because I would imagine the system to be less robust. I cannot fully elaborate this point, but when thinking about being robust I mean that there are some powers that keep a system in balance. Like the ECB and the FED and some other institutions.
Not feasible — again in my opinion — is a merger between the FED and the ECB.
Again, elaboration of such a statement would require a large sequence of articles. I refer just to a symbolic merger between DaimlerBenz and Chrysler that took place in 1998 and got divested in 2007. It all just didn’t work out.
And I think it is better this way. Let the FED to it the American way and let the ECB do it the European way. Somewhere in the middle we will find the best solution.
Let’s forget about a possible merger between these two…
H.J.B.