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The Concept of Global Currency and Global Government

The globalization process imposed both need and question regarding the existence and creation of global government and global currency. This question arises from the current unstable financial system and threats of war due to unstable relations among governments. Current instabilities in exchange rates indicate problems in international business, business planning, investment and their impact on prices and inflation. For stated reasons, the concept of global currency is considered to bring advantages thru reduced transaction costs, elimination of currency risk, greater transparency and possibility of greater competition. Furthermore, the global currency is imagined to function under the surveillance of Global Central Bank, which would consist of representatives of national governments with voting rights determined by the share of national GNP in total gross product in the community of participating nations. This brings us to abandoning the need for both foreign exchange rate and international reserves. The concept of global government signifies an authority operating thru a single body and refers to the idea of all human kind united under one common political authority. The international relations theory brought the so- called “Global Reformist Agenda” formed by realists that stated the importance of greater global social integration and cohesion as precondition for establishing a global government. Further views on this concept have changed thru liberal rejection and proposed the so-called “multi-layered schemes.” Although all concepts are in this moment purely fictional, there is a growing evidence of moving towards those solutions (i.e., EU, UN, World Bank or IMF, all of which are international institutions trying to unite the world economy and achieve the concept of global government and global currency).

globalization, global currency, global government

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