Common Markets, Strong Currencies & the Collective Welfare

TL;DR

The paper argues that globalization leads to the formation of a single global market and currency, driven by a collective welfare principle aiming for system equilibrium and stability.

Contribution

It introduces a theoretical framework linking globalization to entropy maximization and predicts the emergence of a unified global currency and market.

Findings

Globalization behaves like a maximum entropy system.

Large common markets and strong currencies are predicted.

Global integration aims for a single world currency and community.

Abstract

The so called "globalization" process (i.e. the inexorable integration of markets, currencies, nation-states, technologies and the intensification of consciousness of the world as a whole) has a behavior exactly equivalent to a system that is tending to a maximum entropy state. This globalization process obeys a collective welfare principle in where the maximum payoff is given by the equilibrium of the system and its stability by the maximization of the welfare of the collective besides the individual welfare. This let us predict the apparition of big common markets and strong common currencies. They will reach the "equilibrium" by decreasing its number until they reach a state characterized by only one common currency and only one big common community around the world.