What makes a currency ideal? (Preferably if there's 3 strong reasons)?
Answer:
I'm not sure what you mean by ideal. A "high" currency value or a strong trading relationship with the currencies of trading partners is not ideal. Neither is one too weak. Both have advantages and disadvantages, and both create distortions and bubbles that can lead to market failure over time.
Ideally
Currency's foreign exchange value is determined by market forces and not fiat.
The mechanisms for foreign exchange and monetary policy are highly transparent and predictable.
A robust and diversified balance of payments with the rest of the world.
country has more export than import
political stability
fair rule of law
An ideal currency comes about I believe to a nation's strong economy, a low debt/equity ratio, and something backing the currency (i.e. gold)
stability.
That is the best environment to do business in.
Chuck T has the best answers
the only thing i can add is an education system that breeds innovation. For future growth, new ideas need to be born, like 3M and IBM culture.
In countries that do not have a good education system, a trend of flat economic growth is clearly visable.
but ya, chuck nailed it first
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