9 International travelers often wonder why it is necessary to have so many different currencies. Obviously it would be preferable to have just one worldwide currency that could be used anywhere on Earth. After all, the fifty states of the USA use the US dollar, and most members of the European Union use the euro. If the euro can replace the mark, franc, and others, it should also be theoretically possible to have a single world currency. If not, at the least, the big three currencies (the US dollar, euro, and yen) should fix the exchange rates among themselves, preferably at the rates of $1, €1, and ¥100.These currencies could form a common monetary policy that serves as the anchor for the world price level.

Nobel Prize economist Robert Mundell has been advocating a new world currency that merges the dollar, euro, and yen. All currencies will then be converted into this international money.The supply of this currency will be supervised by an international board, and monetary gains from its issue will be split along the IMF quotas. As suggested by Mundell, the name of the world currency should be the dey (dollar, euro, yen) or perhaps the intor.

Is it practical to create and introduce the world currency as envisioned? Assess the likelihood of success of this universal currency.