The topic of a single global currency has been a recurring theme in IELTS Writing Task 2 exams. While not appearing with high frequency, it remains a relevant and thought-provoking subject that test-takers should be prepared to address. Given its potential to resurface in future exams, let’s explore this topic in depth with sample essays for different band scores.
Some people think that all countries should adopt a single global currency. To what extent do you agree or disagree with this statement?
Analyzing the Question
This question asks for your opinion on the idea of a single global currency. It’s important to note:
- The question uses “should,” indicating that you need to discuss whether this is a good idea or not.
- “All countries” suggests you should consider the global implications.
- “To what extent” allows for a nuanced response – you can partially agree or disagree.
- You should discuss both advantages and disadvantages of a single global currency.
Sample Essay 1 (Band 8-9)
In an increasingly interconnected world, the notion of a single global currency has gained traction among some economists and policymakers. While this idea presents some compelling benefits, I largely disagree with its implementation due to the significant challenges and potential drawbacks it poses.
Proponents of a unified global currency argue that it would eliminate exchange rate fluctuations and reduce transaction costs in international trade. This could potentially boost global commerce and economic growth. Furthermore, a single currency might mitigate currency speculation and provide more stability to the global financial system. For developing countries, it could offer a shield against hyperinflation and currency crises that have plagued many nations in the past.
However, the disadvantages of this approach are substantial and, in my view, outweigh the benefits. Firstly, adopting a single currency would require countries to relinquish control over their monetary policy, a crucial tool for managing national economies. This loss of economic sovereignty could be particularly detrimental during times of crisis when countries need flexibility to adjust interest rates or manage money supply. The Eurozone’s struggles during the 2008 financial crisis and subsequent sovereign debt crises illustrate the challenges of a one-size-fits-all monetary policy for diverse economies.
Moreover, a global currency would eliminate an important economic shock absorber – exchange rate adjustments. Currently, if a country’s economy weakens, its currency typically depreciates, making its exports more competitive and helping to stimulate recovery. This natural adjustment mechanism would be lost with a single currency, potentially exacerbating economic disparities between nations.
Additionally, the practicalities of implementing and managing a global currency present enormous challenges. It would require unprecedented levels of political and economic cooperation among nations with vastly different economic systems, priorities, and levels of development. The governance structure for such a currency would be complex and potentially contentious, raising questions about fairness and representation in decision-making processes.
In conclusion, while the idea of a single global currency may seem appealing in theory, I believe the risks and challenges far outweigh the potential benefits. Instead of pursuing this radical change, efforts should focus on improving international monetary cooperation, enhancing financial stability mechanisms, and promoting fair and efficient global trade within the existing multi-currency system.
(Word count: 367)
Essay Analysis (Band 8-9)
This essay demonstrates excellence in several key areas:
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Task Response: The essay clearly addresses all parts of the task, presenting a well-developed argument against a single global currency while acknowledging some potential benefits.
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Coherence and Cohesion: The essay is well-organized with clear progression throughout. Each paragraph focuses on a specific point, and ideas are linked effectively both within and between paragraphs.
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Lexical Resource: The essay uses a wide range of vocabulary accurately and appropriately. Complex items like “relinquish control,” “economic sovereignty,” and “shock absorber” are used effectively.
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Grammatical Range and Accuracy: The essay demonstrates a wide range of grammatical structures used accurately and appropriately. Complex sentences are used effectively without errors that impede communication.
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Critical Thinking: The essay shows depth of critical thinking, considering multiple aspects of the issue and providing specific examples to support arguments.
Sample Essay 2 (Band 6-7)
The idea of a single global currency is an interesting one that has both advantages and disadvantages. While I can see some benefits, I generally disagree with this proposal due to the problems it could cause.
One advantage of a global currency is that it would make international trade easier. Companies wouldn’t have to worry about exchange rates when buying or selling goods in different countries. This could help increase trade and maybe even make goods cheaper for consumers. Also, people traveling to other countries wouldn’t need to exchange money, which would be convenient.
However, there are several important drawbacks to consider. First, countries would lose control over their own monetary policy. This means they couldn’t change interest rates or print money to help their economy during difficult times. For example, if one country was in a recession but others weren’t, it couldn’t lower interest rates to stimulate its economy.
Another problem is that different countries have different economic situations. A single currency might work well for some countries but cause problems for others. We can see this in the Eurozone, where some countries have struggled with the euro while others have done well.
Additionally, implementing a global currency would be very complicated. It would require all countries to agree and cooperate, which seems unlikely given the different political and economic systems around the world.
In conclusion, while a single global currency might have some advantages for trade and travel, I believe the disadvantages outweigh these benefits. The loss of economic control for individual countries and the practical difficulties of implementation make this idea impractical and potentially harmful.
(Word count: 274)
Essay Analysis (Band 6-7)
This essay demonstrates competence in several areas but lacks the sophistication of a higher band score:
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Task Response: The essay addresses the main parts of the task and presents a clear position. However, the ideas could be more fully developed and supported with more specific examples.
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Coherence and Cohesion: The essay is organized logically, with each paragraph focusing on a specific point. However, the links between ideas could be more sophisticated.
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Lexical Resource: The vocabulary used is generally appropriate and accurate, but lacks the range and precision of a higher band score. There’s less use of less common vocabulary items.
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Grammatical Range and Accuracy: The essay uses a mix of simple and complex sentence structures, generally accurately. However, it doesn’t demonstrate the same level of grammatical sophistication as the Band 8-9 essay.
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Critical Thinking: The essay shows some critical thinking, presenting both advantages and disadvantages. However, the analysis could be deeper and more nuanced.
Key Vocabulary to Remember
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Currency speculation (noun) – /ˈkʌrənsi ˌspekjʊˈleɪʃən/ – The practice of buying and selling currency with the aim of making a profit.
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Hyperinflation (noun) – /ˌhaɪpərɪnˈfleɪʃən/ – Extremely rapid or out of control inflation.
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Monetary policy (noun) – /ˈmʌnɪtəri ˈpɒlɪsi/ – The actions of a central bank to influence the amount of money and credit in an economy.
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Economic sovereignty (noun) – /ˌiːkəˈnɒmɪk ˈsɒvrənti/ – A country’s right and power to control its own economic affairs.
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Exchange rate fluctuations (noun phrase) – /ɪksˈtʃeɪndʒ reɪt ˌflʌktjuˈeɪʃənz/ – Changes in the relative value of different currencies.
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Shock absorber (noun) – /ʃɒk əbˈzɔːbə/ – In economics, a mechanism that helps reduce the impact of economic shocks.
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Exacerbate (verb) – /ɪɡˈzæsəbeɪt/ – To make a problem or situation worse.
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Relinquish (verb) – /rɪˈlɪŋkwɪʃ/ – To voluntarily cease to keep or claim; to give up.
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Contentious (adjective) – /kənˈtenʃəs/ – Causing or likely to cause disagreement or argument.
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Unprecedented (adjective) – /ʌnˈpresɪdentɪd/ – Never done or known before.
Conclusion
The topic of a single global currency is a complex one that requires careful consideration of multiple factors. While it’s not among the most frequently appearing topics in IELTS Writing Task 2, its relevance to global economics makes it a potential subject for future exams.
To prepare for this and similar topics, consider practicing with variations such as:
- The advantages and disadvantages of regional currencies (like the Euro)
- The impact of digital currencies on global economics
- The role of reserve currencies in international trade
Remember, the key to success in IELTS Writing Task 2 is not just about having knowledge on the topic, but also about structuring your essay well, using a range of vocabulary and grammatical structures, and developing your ideas fully.
We encourage you to practice writing your own essay on this topic and share it in the comments section below. This active practice is one of the most effective ways to improve your writing skills and prepare for the IELTS exam.