Convertible Currency

KEY TERM and WHY YOU ARE INTERESTED IN IT

I chose to review the term convertible currencies because it appeals to me that some countries can exchange money freely and others struggle to do so. I am doing my paper on Germany and the change from the Duetche Mark to the Euro are an interesting study on how convertible they both are.

EXPLANATION OF THE KEY TERM

Convertible currency is one that can be bought or sold, without restrictions, in order to purchase another countries currency. Developing countries or those with strict governments sometimes place restrictions on the exchange of currencies either in out of the country. These are less stable currencies and are less liquid than easily convertible currencies.

MAJOR ARTICLE SUMMARY

The article “A “Green” Convertible Currency discusses the issue some countries have with unemployment, inflation and its ecology falling apart which causes issues with convertible currency for that country. The author discusses the concept of New Currency and how it has advantages for a country. Some of the advantages are immediate convertible currency, negative-interest and an anti-inflation impact on the economy. A new or green currency issued by a central bank would create an international convertible currency that is very stable and would help fix the countries other issues of unemployment and inflation.

DISCUSSION (In your own words, discuss each of the following points)

The article relates to the explanation of convertible currency by showing that countries do not all have the same convertible currency and are always trying to come up with new ways to get there currency more desirable, internationally. If a country does not see the issues inside its borders and how it affects its ability to deal globally, that nation will suffer and fall behind in the global market place.

As I read all of the articles I noticed “convertible currency” meant a lot of different things depending on the context of the...