From IMF, World Bank To Single Global Currency<br />Faculty: Presentation by: <br />Prof. Sudev Das RinkiMusaddi<br /> ` SaloniMohta<br />ShraddhaNahata<br />VinayAsopa<br />
CONTENT<br />Introduction<br />Role of IMF & WORLD BANK<br />SINGLE GLOBAL CURRENCY<br />Current Situations<br />Implementation<br />IMF with SGC<br />World Bank & SGC<br />Benefits<br />Drawbacks<br />SWOT Analysis<br />Conclusion<br />
INTRODUCTION<br />What is GLOBALIZATION?<br />Not a new phenomena<br />Post World War globalisation was dormant!<br />
Role of IMF and World Bank<br />World Bank<br />IMF<br />International interdependence<br />International solidarity<br />International interdependence & solidarity should not replace national self-responsibility<br />We should regard the diversity of experiences & cultures as a part of the wealth of our planet.<br />To have a financially stable global market<br />Crisis prevention through more transparency in economic data and policies.<br />To make debt free economies through good judicial, financial and economical systems <br />To make life of underdeveloped and developing nations more secure<br />To eradicate poverty<br />
Single Global Currency<br />SGC in 17th century Spanish dollar<br />EURO the 1st SGC in 20th century<br />Single Global Currency Association<br />Morrison Bonpasse<br />
CURRENT SITUATIONS<br /><ul><li>DOLLAR AND EURO
FUNDAMENTAL HUMAN RIGHTS </li></li></ul><li>IMPLEMENTATION<br /><ul><li> WHEN??
HOW SMOOTH, INEXPENSIVE AND PLANFUL OR ROUGH, COSTLY AND CHAOTIC WILL THE JOURNEY BE??
WHAT CAN BE DONE??</li></li></ul><li> The IMF with SGC<br /><ul><li> IMF should utilize Special Drawing Rights, or SDRs, to replace the </li></ul> dollar as a new standard for holding foreign exchange reserves in<br /> international trade transactions<br /><ul><li> Basket of major currencies used in international trade and finance
US dollar(44%),Euro(34%),Japanese Yen(11%),Pound Sterling(11%)</li></li></ul><li>world bank and sgc<br /><ul><li> maintain price stability & 1 worldwide interest rate
Eliminate the need to maintain international reserves
Reduce worldwide inflation (by approx 2%) and thereby ensure low loan interest rates</li></li></ul><li>DRAWBACK<br /><ul><li>It would be difficult for any country to adjust its domestic monetary policy to remedy a specific economic situation.
Finding a good governance system for the world to regulate SGC, could prove more difficult.
It limits the ability of individual countries to control interest rates. </li></li></ul><li>SWOT ANALYSIS<br /><ul><li>STRENGTH</li></ul>No Transactional cost <br />Elimination of B-O-P and maintain foreign reserves<br /><ul><li>WEAKNESS</li></ul>Individual country would not be able to control its monetary policy<br />Countries may not be willing to join together to a single global bank and single global trading federation<br /><ul><li>OPPORTUNITY</li></ul> More unity amongst countries if it gets implemented<br />Asian and other emerging markets have excessive and inefficient forex reserve explain by the currency instability and this problem can be eliminated<br /><ul><li>THREAT</li></ul>Implementation problem<br />Export , import & tourism industry may get badly affected .<br />
CONCLUSION<br />SGC will help in globalization<br />Proper regulation of global monetary bank<br />Proper implementation of single global currency.<br />Adequate control over monetary policy of individual country should be given.<br />Single Global Currency could be named as “Eartha” , “Globo” or “Mundo”<br />Favor : 33%<br />Oppose: 63%<br />Not sure : 4%<br />