Common Currency

[Tarnell]

What about having a common currency throughout the WA to help encourage trade and financial stability? Nations could have their own currency, but would be required to accept the common currency of the WA. Any thoughts?

[Liberty987]

The EU is a good example of this as to why it would fail. Unfortunately trying to accommodate the running of two currencies in one nation is too much and the system would be so complicated the resolution would have to be long as to clear all the loose ends from it.

[Tarnell]

The EU is a good example of this as to why it would fail. Unfortunately trying to accommodate the running of two currencies in one nation is too much and the system would be so complicated the resolution would have to be long as to clear all the loose ends from it.

Why not then require ONE currency? Create a system full of failsafes to create a stable economy between the regions. I would love to take some steps foward to creating a more united World Assembly.

[Tarnell]

Or if not create a sepereate currency, create an agreement stating the conversions between the most common currencies? At this point, since this is only a concept, I am just throwing ideas around.

[Eireann Fae WA Mission]

"What of nations that do not use currency? Eireann Fae, for example, is a national community, where everybody simply does their part for the betterment of all. Monkiah, as we understand it, use labour as the basis of their economy. Your idea as proposed would be meaningless to us."

[Tarnell]

"What of nations that do not use currency? Eireann Fae, for example, is a national community, where everybody simply does their part for the betterment of all. Monkiah, as we understand it, use labour as the basis of their economy. Your idea as proposed would be meaningless to us."

This is a great point. I am not sure about how to deal with this. A possible clause for exceptions? Other than that, I cannot think of how else to resolve this. I would love to hear anyone's ideas on how to resolve this.

[Rutianas]

No to a common currency. We're quite happy with our own.

Paula Jenner, Rutianas and Swarming Cute Kittens Ambassador

(OOC: From what I recall, it would be illegal to do. It'd require every WA nation having the same currency on their nation page.)

[Darenjo]

Sorry, but having a common currency is against WA rules.

[Philimbesi WA Office]

We once again renew our approval of this concept on the stipulation that nations give us all their money and use our currency system.

Nigel S Youlkin
USP Ambassador to the WA.

[Tarnell]

Due to the fact that this resolution violates WA rules, I revoke my concept

[Glen-Rhodes]

Sorry, but having a common currency is against WA rules.

This wouldn't be against the rules. It would be an international currency, acceptable alongside national currencies. The problem isn't legality, but rather if the idea is even logical. A currency has to have at least one nation behind it, otherwise the currency won't have anything on which to base its value.

[Tarnell]

Sorry, but having a common currency is against WA rules.

This wouldn't be against the rules. It would be an international currency, acceptable alongside national currencies. The problem isn't legality, but rather if the idea is even logical. A currency has to have at least one nation behind it, otherwise the currency won't have anything on which to base its value.

Then i guess we continue.... what should we do now? drafT?

[Bears Armed]

Give up on the idea, as impractical, and go to the Bar.

^_^

[Flibbleites]

This wouldn't be against the rules. It would be an international currency, acceptable alongside national currencies. The problem isn't legality, but rather if the idea is even logical. A currency has to have at least one nation behind it, otherwise the currency won't have anything on which to base its value.

Then i guess we continue.... what should we do now? drafT?

While this is not necessarily illegal, trying to write something like this that is legal was once described as being as difficult as trying to navigate a mine field on a pogo stick, drunk and blindfolded.

[Philimbesi WA Office]

This wouldn't be against the rules. It would be an international currency, acceptable alongside national currencies. The problem isn't legality, but rather if the idea is even logical. A currency has to have at least one nation behind it, otherwise the currency won't have anything on which to base its value.

Then i guess we continue.... what should we do now? drafT?

He said it wasn't illegal, it didn't say it was a smart idea... bear that in mind...

[Glen-Rhodes]

Then i guess we continue.... what should we do now? drafT?

You misunderstood me, I think. While it's not illegal, it's also not possible. An international currency, without any economy to base itself on, would only have one way to value itself: by World Assembly fiat. For each and every market, the World Assembly would have to say, "the WA Currency is valued at X." It would have to also readjust it frequently, if not continually.

Why is this? Because there's no market attached to the currency that would allow a floating value. The dollar's value is based upon many different aspects of the world and US domestic economy. As is the Euro's. The value of the Euro also affects the value of the dollar, and vice-versa. If you have a real estate bubble burst in the US, the dollar is affected. If you have a real estate bubble form in Europe, the Euro is affected. This cannot be replicated in an international currency that has no economy to determine its value.

To fix that, you would have to either (a) force all nations to use a single currency, which is certainly illegal, or (b) peg this international currency onto a nation, region, economic zone, or what-have-you. (b) would be of questionable legality, but also certainly impractical, if not impossible, given the size of the NS world.