For those who would like to have a rich economic NS experience, this is something good. The Molinis Exchange Rate System (MERS) is a simplified system of fluctuating exchange rate systems that will record exchange rates for different nations' currencies. This will be very good for market-orientated economies, with trade and conversion of currencies becoming easier and more efficient. The fluctuation will increase competitiveness and allow economies to thrive.
The MERS works on the following simplification: if your economy goes down in NS, then your currency will experience inflation in order to attract more investment and exporting, similar to what China is doing now. Once a week, the state of the economy will be checked over and the exchange rate changed accordingly. Here's how the maths works:
Initially, there is currency a and b and the relationship between them, x: a = xb, where you can choose the initial x in the form.
After a week, da represents the change in the state of the economy of a divided by 100 and db represents the change in the state of the economy of b divided by 100. The formula for the exchange rate is:
a = (x-(db-da))b so if db is larger than da - economy b is doing better - then the final x will be smaller and thus currency b will be more powerful. Currency a will experience inflation with respect to b and this will help it regain competitiveness. Similarly, the inverse currency exchange will be calculated as follows:
Initially: b = a/x then later b = a/(x-(db-da)).
This system is recommended for serious and economic nations. It will only involve five members to keep things simple for now. I hope that others will find this intriguing and promising.
Exchange rates will be posted once a week here, starting today, with changes in economy affecting every week. When using these exchange rates, always refer to the most recent rates.
Current users of the MERS and their currencies:
Plessur – Plessurli nucleon (PLN)
Fashie – Dollar (DLR)
British Accia – Hammer (HAM)
Nitralia – Alton (ALT)
Whovian Tardisia – Credit (WCR)
