July 15, 2017 – Fort Russ News –
In January 1988, the Economist publication predicted that within 30 years, residents of the United States, Japan, Europe and other countries will be using a single currency.
Experts predicted that by 2018, national currencies will become a ‘bizarre form of confusion’, and they will be replaced by some kind of a new currency, which will be approved by both consumers and companies.
In the late 80s, such a prediction seemed rather strange, although monetary unions were already being created. The world’s authorities were trying to create a managed exchange rate and monetary system reform, but their efforts only panicked the market, which led to the “Black Monday” in October 1987.
The Economist wrote that the adoption of a new currency of the world will occur automatically, and the absence of currency risk will stimulate trade, investment and employment growth.
Also, the presence of a single currency will restrict national governments, taking away their control of monetary policy, and all control will pass to a new Central Bank or the IMF.
In addition, each country will be able to use taxes and public spending to compensate for the temporary drop in demand, but to finance its budget deficit it will have to borrow rather than print money.