Which monetary standard does your country use?

[Civilana]

Since 1963 we have been using lyrrae (lyrra). It is basically orient silver coins with famous peoples' face on. Paper money is reserved for 5000 lyrrae+. Before the lyrra we used the Hegefpontickbeau, AKA the HPKB. After the Civilanan Hegefpontickbeau Vault fell, the King proposed a new currency called the Lyrra.

[Ilumo]

A new standard was introduced when Ilumo was founded in order to form a more unified economy, though only the government really uses it. The Lumosian Coins (LC) were created from the few silver mines the government was able to secure. Now a debate in the Regional Parliament suggest a Region-wide currency, a suggestion Ilumo supports in hopes of encouraging trade and boosting the economy.

[Nova Doria]

The Mesotone exists as both physical and crypto currency. However, only its physical form is potentially backed by material resources. Moreover, whether it is backed by material resources and by what material resources it is backed is governed by which type of currency it is:

• Metallic currency must be backed by the primary metal that it is made of for no less of their value than the percentage of said metal present therein.
  Notes:
  
  • currency does not count as metallic if the primary metal in its constitution accounts for less than one seventh of its volume
  • ties between metals are decided in favor of the most precious metal
• Non-metallic currency may be backed by nothing harder than the full faith and credit of the issuer.

[Pandeeria]

The Iverik Dollar is a hybrid between being Fiat and Backed. It's backed Gold and Silver so it's looked well upon as a international currency, giving us better trading options. However domestically, it's Fiat so we can rate it's value accordingly to maximize efficiency and control.

[The Nevadan Desert]

We have a gold standard. Our small economy, combined with our gold/silver supplies, allow us to have a very stable currency system.

[Creataris]

The credit is an electronic currency transferred via credit chips which when used deduct the amount payable for goods or services directly from the users bank account. Chips with a set value are available at citizens request to limit an amount of money spent and are given to tourists if they wish to purchase goods or services.

The credit is traded at a 1/1 exchange rate irrespective of what other nations say as the currency is controlled not by any banks but through direct government absorption of inflation/deflation which keeps the currency stable. The government uses the Heritage Check system to control the currency effectively removing taxes from the equation: inflation is countered by the selling of trade goods with the proceeds paying for government services whilst the excess is given equally to all citizens, conversely, deflation is countered by the printing of more money and the production of new trade goods.

[Cirona]

The Ceronic franc is a fiat currency.

[Ainin]

The Aininian Dollar is a fiat currency.

[Pimps Inc]

A mix between Commodity Money system and Fiat system.The Pimp buck is born.

[Yukonastan]

The DRC of Yukonastan uses a brass standard, since our money doubles as ammunition. It keeps the standard fresh.

[Dontaria]

Currently none, but we are looking into adopting the fiat system.

[The Batorys]

The Empire's currency is a fiat currency... backed by Batory power, more than anything. The Empire has had money made from materials that are in and of themselves essentially value-less for a long time, as it was realized long ago that money really was simply transferable value, and was not any more or less so if based on metals.

The Empire does not use a currency based on the value of precious metals for two reasons:

1. Supply of a precious metal does not necessarily match the fluctuations in population or productivity. If the supply of gold, for instance, stays relatively constant (production is limited and relatively slow), and the Empire's population experiences rapid growth due to an influx of immigrants or a baby boom, that could cause problems, due to there only being so much available money per resident of the Empire, turning economic well-being into a zero-sum game (if one individual is doing well financially, then someone else must be dirt poor), as well as, in severe cases, shrinking the amount of available money per individual, and causing deflation, which is highly damaging to an economy, moreso than inflation. Conversely, if the population stays constant, but the supply of gold fluctuated wildly, say, if a rich new deposit were discovered, that could cause enormous amounts of inflation, devaluing the currency. These are problems avoided by not having a precious metal standard.

2. The Batorys find it unwise to base one's currency upon a resource one does not control. All currencies can be manipulated, given the will and means to do so, of course, but in such a large world, full of unfriendly countries, basing a currency on a precious metal is risky. Precious metals are not distributed evenly in the Earth's crust. While gold might be rare in Country A's land, it might be much more common in that of Country B. If the former bases their currency on gold, then the latter is in a unique position to destabilize it if they choose to do so, by dumping gold onto the market. Conversely, and somewhat more difficult, foreign or even domestic agents could destabilize an economy of a nation with a gold-backed currency by deliberately decreasing the supply of gold through various manipulations. You can control the supply of your own currency, but you can't fully control the supply of a precious metal, because other countries have access to those metals, too, whereas only you can produce more of your currency.


Interestingly enough, the Batory First Empire (they are on their Second Empire, now, with a thousand year Queendom between the two) did use a currency backed with a metal... albeit, not a precious one. The currency of the First Empire was backed with iron. In its earliest days, the currency literally was iron. Later on, other materials were used for the actual currency, as iron became impractical to carry around to purchase things with. Iron had a wide variety of uses, unlike gold and silver, and there was a lot of it, so supply was relatively stable.

Still, eventually the Second Empire chose to detach their currency from any resource that other states also had access to, out of pragmatism and paranoia.