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How Is the United States Economy Effected If Most Countries Peg Their Currency with Euro?

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Submitted By Rashad44
Words 609
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There are a lot of different pros and cons when asking this question. In my opinion this would be terrible idea because every economic system is not the same. Therefore if this were to take place it would it automatically eliminate a numerous amount of great opportunities and achievements that the United States economy has worked so hard for, for so long. Loss of national sovereignty being a tremendous downfall for the United States economy being that the whole goal of the United States were to be independent. In such a union, not every member country is as strong or weak as the others economically or structurally. Meaning right now the United States as well as other countries have certain boundaries and threshold within their economic systems. The level of co-operation needed in such a union has to be very high to deal with a host of issues including inflation, interest rates and asymmetric shocks (for example an oil shock impacting one of the member countries may not necessarily impact the other). Meaning that if anything happens in other countries we will automatically be directly affected due to the fact that we all have the same currency. As of now with most countries not having the same currency we can help one another. Right now Euro is worth a lot more than the United States dollar. Everything is temporarily which means that depending on the time that the United States decides to peg their currency with euro determines the out outcome. It depend on how the European economy is doing at the time compared to the United States economy. If we all have the same currency we are asking for trouble, because of the language barrier between each country. It would also cost an enormous amount of money to replace every countries currency with a super-currency. There are a numerous amount of questions that need to be asked before making a drastic change...

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