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Universal Currency; Recommendation
Topic Started: May 11 2015, 05:39 PM (149 Views)
Charlie T. O. Jones

After pouring over the RP thread, and looking at the formation of various alliances, trading pacts et cetera, in addition to all the economic deals being made between different states, it may be necessary for UCON to adopt a universal currency for the purposes of the RP. I therefore recommend that a member of the General Assembly propose a bill, with all the legal jargon appropriate for an Act of the Assembly, which would implement the following provisions:

- Create a Universal Currency for Yukon, to be named by the Regional Assembly (though my suggestion would be the Universal Standard Credit or USC)

- Ensure free use of the USC by all players, passing appropriate legislation to prohibit any monopoly on the USC except by authorities specifically created by the Regional Assembly

- Peg the value of the USC to 1 United States Dollar, to allow natural progression of inflation within Yukon (in order to replicate the consequences of inflation et cetera found on present day Earth)

- Create a scale with which to calculate exchange rates between national currencies and the Universal Standard Credit, based on economic strength, which would use the following guidelines:

-- Economic Strength = 0/100, National Currency = 0.50c
-- Economic Strength = 50/100, National Currency = 1.00c
-- Economic Strength - 100/100, National Currency = 1.50c

note: for every point below an economic strength of 50/100, a national currency would be devalued by 0.01c; Conversely, for every point above an economic strength of 50/100, a national currency would be revalued by 0.01c
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46566
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Why not have it based off the three strongest currencies of active rp players? Nedea, Prime and me? I think this bill would weaken perceived values of a currency. If this would pass then the Kredit and the Euro (Nedea and me) currencies would equal Sestertias (Herargons) currency.
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Charlie T. O. Jones

I would be happy to support any amendment which established a clear formula to calculate the value of national currencies in relation to the Universal Standard Credit. There must however be a clear formula in place to allow such calculation. The USC itself would be pegged to the USD however.
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Tyvenia

Something like this would definitely have my support!
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46566
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Charlie T. O. Jones
May 11 2015, 06:45 PM
I would be happy to support any amendment which established a clear formula to calculate the value of national currencies in relation to the Universal Standard Credit. There must however be a clear formula in place to allow such calculation. The USC itself would be pegged to the USD however.
About the only problem with creating a universal dollar is nations claiming what their currencies equal to it. Maybe we could have a eye test for each currency and have the RPMT determine the exchange rate of each RP nation based off of a nations economy number,GDP, population, Government spending in economy and RP. Maybe every 2 weeks a statement is released how each exchange rate changed. It will give some sort of view on how each nations strength is based in RP and numbers. While no official formula will be released since each RPMT member will place more value on a certain aspect most likely. Things like me leaving MAT could negatively impact my exchange rate, Hereagons Quarantine should have a huge impact on his exchange rate. While things like the expansion of the Commonwealth or SUN could look to improve exchange rates.
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New Wolfeinstein
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I personally don't like this idea, I still think we need something to calculate exchange rate but we should use a currency that actually exists(the Kredit or the Euro)
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Welsh Cowboy

Maybe I'll start amassing a minimalist/libertarian ideology, but I don't see the need to stop nations from simply RPing their own currencies and if wanted, their own currency unions with other nations, outside of legislated regional currency.

I might be okay with exchange rates, as that'd be useful to standardize, but again, I don't see the need to legislate it here, rather than letting it develop naturally.
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46566
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Welsh Cowboy
May 13 2015, 11:42 PM
Maybe I'll start amassing a minimalist/libertarian ideology, but I don't see the need to stop nations from simply RPing their own currencies and if wanted, their own currency unions with other nations, outside of legislated regional currency.

I might be okay with exchange rates, as that'd be useful to standardize, but again, I don't see the need to legislate it here, rather than letting it develop naturally.
I think it's more along the lines of trying to use something as a standard for a way to calculate exchange rates.
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Welsh Cowboy

46566
May 14 2015, 12:12 AM
Welsh Cowboy
May 13 2015, 11:42 PM
Maybe I'll start amassing a minimalist/libertarian ideology, but I don't see the need to stop nations from simply RPing their own currencies and if wanted, their own currency unions with other nations, outside of legislated regional currency.

I might be okay with exchange rates, as that'd be useful to standardize, but again, I don't see the need to legislate it here, rather than letting it develop naturally.
I think it's more along the lines of trying to use something as a standard for a way to calculate exchange rates.
Don't get me wrong; I see the potential uses for this. I do not, though, understand why this couldn't be developed by individual nations or alliances that see a use for it, without RA legislation.
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Charlie T. O. Jones

Quite simply because natural progression takes too long. Besides, nations have more important things in character to worry about, such as the tensions between the Commonwealth and SUN. This bill would create a universal currency as a basis for a global economy, without the need for extensive roleplay.
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Arcadia
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I'm moving this to the RP Ministry so that it can be discussed indefinitely until an Act can be authored.
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46566
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Welsh Cowboy
May 14 2015, 12:30 AM
46566
May 14 2015, 12:12 AM
Welsh Cowboy
May 13 2015, 11:42 PM
Maybe I'll start amassing a minimalist/libertarian ideology, but I don't see the need to stop nations from simply RPing their own currencies and if wanted, their own currency unions with other nations, outside of legislated regional currency.

I might be okay with exchange rates, as that'd be useful to standardize, but again, I don't see the need to legislate it here, rather than letting it develop naturally.
I think it's more along the lines of trying to use something as a standard for a way to calculate exchange rates.
Don't get me wrong; I see the potential uses for this. I do not, though, understand why this couldn't be developed by individual nations or alliances that see a use for it, without RA legislation.
Well SUN pretty much uses the Kredit as a singular currency.(not sure about New Santiago and Thalmath) Though i'm sure there is going to be a singular exchange rate. It's more about having a standardized system for the exchange rates. The Euro is probably the best singular nation currency out there but the Kredit is strong due to the other nations using it.Now how far would the kredit fall in exchange rates if a country stops using the kredit? The Kredits power in my mind at least is the amount of nations using it. It would only severely weaken if St Saratoga or Moarfall stop using the kredit. Though it could be hurt or helped(depending of the country) if a nation leaves. Another question that could be made is the usage of the Krendars. While Prime has a huge population near mine(500 million pop difference) His GDP is closer to Nedeas(210 Trillion difference) There is a 8 billion population difference between Nedea and Prime. My GDP is twice that of Primes which is surprising based on how close we are in population size. Now how would Primes currency be equaled to the Kredit or the Euro?

From the stats Primes currency should not equal Nedea or my currency. I think we need at least a way to determine how to make the exchange rates. At this time anyone can claim to have a good exchange rate. While i admit it's sometimes not good to have a high exchange rate.(makes your exports higher priced) I kind of think we need a way or in this cause a Group of people(RPMT) to use a eye ball test and specfic index numbers and RP to make the exchange rate values.
Edited by 46566, May 14 2015, 08:01 PM.
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Tyvenia

The RPMT will be seeking to study this issue and try to put some sort of legislation, likely opt-in, within a couple of weeks.

BTW, please keep discussing. This message is not meant to discourage any sort of discussion. In fact, since you now know that we are considering it, it becomes even more important to let us know how you feel.

Thanks!
Des
#brickbybrick
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Countriopia
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Maybe we could have a Universal Currency for the values provided by NationStates. I'll try to develop.
The website itself provides us with the values of GDP per capita and total GDP in "our" currencies. However, this does not take into account whether, actually, our currency has gone through a process of devaluation or not or if we are in a currency union. We can have, therefore, a currency only to translate the values in our nation pages to some standardised, universally accepted values. Then, we can reconvert this value to our currencies via the roleplayed conversion ratio.

For example, using my own data:

GDP per capita: 153.673 NS currency. I convert it into the universal currency(1 NS currency = 1.49 UC): 228.972,77 UC

Then, I decide that my currency is 1 RP currency = 2 UC. Therefore, my GDP per capita is: 114.486,385 RP currency.

In that way, we can change the value of our currencies for RP purposes, if we want them to be cheaper or more expensive, while maintaining the same total wealth in the universal currency.
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