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Results tagged with currency
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user 43
a generally accepted form of money, including coins and paper notes , which is issued by a government and circulated within an economy.
3
votes
Why should Greece destroy their cash euros?
And leaking out that you're printing a new currency is quite detrimental. … So in essence, yes, it will be destruction of value, as the new currency/Drachme will have an exchange rate lower than 1, but it is the cheapest way of transitioning to a new currency. …
- 10.8k
6
votes
How could the Euro zone be broken up in an ordered way?
That is, Germany's new currency will probably value up against whatever Greece will have. … An exit would lead to chaos in any case: For the moment, there
is no new Greek currency as a new Drachm. …
- 10.8k
1
vote
Accepted
How to determine the worth of a good
What you are after
The value of a good should be the highest possible utility that it would give anyone in the economy. If you care differently about different people, you are interested in the highe …
- 10.8k
3
votes
Accepted
What is the relationship between S&P500 and the US dollar
You're doing the traditional mistake of people not familiar with Econometrics: You mistake correlation and causality.
You look at a change in the USD, assume it to be exogenous, and then predict an i …
- 10.8k
5
votes
Gold coins as currency?
Minimal/low inflation is not necessarily good
Having fixed exchange rates (one currency) is not good! … First, as in the links above, fixed currency, fixed exchange rates etc. are all extremely worrisome. …
- 10.8k
15
votes
Accepted
What would happen if the world switched to a single currency?
Prologue: There is the theory of Optimum Currency Areas (OCA) which characterizes properties that a larger area would need to have if it were to operate on a single unit of currency. … Intuition behind OCA
Basically, a country gives up the tool of monetary policy when it subordinates into such a currency union. …
- 10.8k
11
votes
Does Dogecoin or Bitcoin have a more appropriate rate of monetary inflation?
Your coins do not have 0 inflation in the long run
First, we need to set straight that you have a critical error in your supposition: The rate of creation of money is not the only determinant of the …
- 10.8k