Topic Summary
People have mostly relied on some form of currency (money) to buy and sell goods and services for thousands of years. Whether it’s an allowance from parents, debts carried and paid, or commercial deals worth billions, the transfer of money is ever-present. Currency is exchanged between individuals, companies, and governments. Countries seek to protect their currency through monetary policy. But, what one country views as helpful policies are often considered harmful by others. Multinational currencies such as the Euro have changed the face of the global economy. Will multinational currencies lead to global currencies? How might the end of government-backed currencies shape global politics and economic exchanges? What role will cryptocurrency play?
The increasing digitization of currency calls into question the understanding of what currency is and what it means to its users. How would the end of paper money impact societies around the world? Alongside governmental action, individuals have the opportunity to create and promote investment options targeted to specific beliefs or practices. How will the use of money/currency evolve in the future?
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Let's Examine the Big Mac!
Explore: https://www.economist.com/big-mac-index and examine the graph there.
Answer the following questions:
1. Where is the most expensive Big Mac?
2. Where is the least expensive?
3. Because there is not a McDonalds in every country around the world, what might be a more universal product to do a global currency comparison? Why?
4. Go to https://worldpopulationreview.com/country-rankings/most-mcdonalds-by-country
Examine the map and read the article about countries that have McDonalds.
5. Which country outside the US has the most McDonalds?
6. Which European country has the most McDonalds? How many does it have?
Apply: Find an online currency calculator.
Compare costs for 3 common items in countries on 3 different continents around the world.
For example:
a loaf of bread in South Africa, in Japan, and in your home area
How did the items compare? What factors do you think may affect the currency for a loaf of bread? Now, name 3 new items and do a currency comparison. You may use any 3 different currencies for your comparison.
Think: What factors affect currency values? Why do these values change periodically? Do you think having a global currency will ever be possible? Why or Why not?
