Macroeconomics (7th Edition)
Macroeconomics (7th Edition)
7th Edition
ISBN: 9780134738314
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 14, Problem 14.1.7PA
To determine

The Chinese paper currency becoming commodity money or fiat money.

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The euro is the official currency of almost all of the European Union as well as several smaller countries. It is the second-most traded currency in the world after the United States dollar. As of August 2018, with more than €1.2 trillion in circulation, the euro has one of the highest combined values of banknotes and coins in circulation in the world, having surpassed the U.S. dollar.  By March 2002 it had completely replaced the former currencies of the European Union countries. Do you think that a common currency for North America (the U.S., Canada and Mexico) would be a good idea?  Would it help facilitate trade?  Why?
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