Opinions on a possible International Currency

[Tredovski]

I have been at a block lately with proposals on economic legislation and proposals. And an Idea struck me; International currency. The Idea wasn't to create a spending currency, not at all. The currency would be mathematically complicated, and would directly reflect the state of the international currency. I know I'm not supposed to point this out, but in the "Real World" the US dollar is used for international examples on economic standards. So I would like to know if that would even be legal to propose, and if anyone is interested in seeing a draft. This would help drag all our economies together in order to create economic stability. Please don't take a side yet, I haven't even started a draft. So just tell me if it sounds compelling and if it would be legal to propose.

[Ardiveds]

OOC: Unless I'm mistaken, using real world currency names and symbols like dollar or pound would fall under "RL reference" rule violation. In any case, using dollar would be pretty arbitrary anyway.

[Tredovski]

Won't post it on my proposal, just wanted to clear the smoke to make it decipherable

[The New California Republic]

No. I doubt this idea would get support.

[Ardiveds]

OOC: You should probably read this: viewtopic.php?f=9&t=159348
if you're interested in writing proposals.

[Tredovski]

OOC: You should probably read this: viewtopic.php?f=9&t=159348
if you're interested in writing proposals.

Have, no violations, at least I don't think...

[Grays Harbor]

Not legal. Since currency is one of the customizable areas for nations you cannot have a world currency. That would fall under the metagaming ban.

[The New California Republic]

Not legal. Since currency is one of the customizable areas for nations you cannot have a world currency. That would fall under the metagaming ban.

Keep in mind, it would not be a legit currency as you cannot buy something with it, its used to portray international economic standard, and would be used to measure inflation. Think of it like a ruler that uses imperial and metric, not a whole new system of measurement.

It'd still be illegal because it aims to change a customizable field gameside.

[Stellonia]

No.

[Imperium Anglorum]

As to legality: keep all currencies and their names, just require that they be interchangeable at par; that is, effectively, what a currency union is. Historically this was seen in the Latin Monetary and the Scandinavian Monetary Unions during the 19th century. See eg Luca Einaudi, "From the Franc to the 'Europe'" (2000) 53 Economic History Review 284. Most currency unions are viewed as political projects with economic asides. Ibid 285 (describing the "frequent interpretation of the LMU ... [as a] French project").

The economics of a currency union are very different and dependent far more on specific economic circumstances. Uninformed and unargued rejections of the idea aside, if you are actually interested in the policy arguments behind this, look up "optimal currency area". Eg Paul Krugman, "Revenge of the Optimal Currency Area" in Daron Acemoglu et al (eds), NBER Macroeconomics Annual 2012 (Nat'l Bureau of Economic Research 2012); Patrick Bolton and Haizhou Huang, "Optimal Payment Areas or Optimal Currency Areas?" (2018) 108 American Econ Assn Papers and Proceedings 505 (some recent research on the topic); Robert Mundell, "A Theory of Optimum Currency Areas" (1961) 51 American Econ Rev 657 (being the classic paper introducing the idea). Also see generally "Optimum Currency Areas and the Euro" in Paul Krugman et al, International Finance: Theory and Policy (10th edn, 2015) 332 (explaining OCA theory's implications in terms understandable to the undergraduate).

[Tredovski]

As to legality: keep all currencies and their names, just require that they be interchangeable at par; that is, effectively, what a currency union is. Historically this was seen in the Latin Monetary and the Scandinavian Monetary Unions during the 19th century. See eg Luca Einaudi, "From the Franc to the 'Europe'" (2000) 53 Economic History Review 284. Most currency unions are viewed as political projects with economic asides. Ibid 285 (describing the "frequent interpretation of the LMU ... [as a] French project").

The economics of a currency union are very different and dependent far more on specific economic circumstances. Uninformed and unargued rejections of the idea aside, if you are actually interested in the policy arguments behind this, look up "optimal currency area". Eg Paul Krugman, "Revenge of the Optimal Currency Area" in Daron Acemoglu et al (eds), NBER Macroeconomics Annual 2012 (Nat'l Bureau of Economic Research 2012); Patrick Bolton and Haizhou Huang, "Optimal Payment Areas or Optimal Currency Areas?" (2018) 108 American Econ Assn Papers and Proceedings 505 (some recent research on the topic); Robert Mundell, "A Theory of Optimum Currency Areas" (1961) 51 American Econ Rev 657 (being the classic paper introducing the idea). Also see generally "Optimum Currency Areas and the Euro" in Paul Krugman et al, International Finance: Theory and Policy (10th edn, 2015) 332 (explaining OCA theory's implications in terms understandable to the undergraduate).

Thanks but it was going to be used as a tool of measurement, sort of like Economic standard. And as far of OPA, yes, the Article of Confederations proves that having different currency can be counter productive

[The New California Republic]

Thanks but it was going to be used as a tool of measurement, sort of like Economic standard.

Then no, that's trying to change game mechanics if it truly is intended as such, as it would by necessity involve imposing some kind of unit gameside.

[Tredovski]

Thanks but it was going to be used as a tool of measurement, sort of like Economic standard.

Then no, that's trying to change game mechanics if it truly is intended as such, as it would by necessity involve imposing some kind of unit gameside.

Yeah already moved on, this wasn't an actual idea for law, as much a ground floor for more economic policies I've been studying. But thanks!

[Imperium Anglorum]

Thanks but it was going to be used as a tool of measurement, sort of like Economic standard [...]

In the scope of national accounts, economists do this right now not in terms of currencies, but in terms of how much it costs to purchase two identical baskets of goods and services in two different currencies. It is a regular Anglophone convention to report it in terms of dollars, but that is only a translation convention, not one related to the underlying measurement.

[Djod Cleprialand]

Thanks but it was going to be used as a tool of measurement, sort of like Economic standard [...]

In the scope of national accounts, economists do this right now not in terms of currencies, but in terms of how much it costs to purchase two identical baskets of goods and services in two different currencies. It is a regular Anglophone convention to report it in terms of dollars, but that is only a translation convention, not one related to the underlying measurement.

that’s a pretty deep thought

[Omigodtheykilledkenny]

FYI: An attempt by the NS UN to create an international currency: https://nationstates.ermarian.net/jolt/1225/526927

Nations did not have to adopt the currency (which is, I am assuming, why it was declared legal), but were encouraged to use it. However the proposal suffered from its own problems beyond that. (It also included a funding scheme since the NS UN had none.)