Common Currency

[Deleted]

In an attempt to make international trade easier, we propose a common currency. There would be a centralized bank in a city that is yet to be chosen. The head of the bank would work on a rotational system in which all of the nations who use the currency would be a part of. There would be an annual meeting between the ministers of finance of the member nations.

[North American Republics]

The Council Republic of North American Republics has decided to not join this monetary union, but is willing to work with it in international trade.

[Deleted]

Common currency= Eurozone

Euozone= bad

Good idea though!

[Deleted]

The Eurozone is uncentralized. We would have to have a strong central bank. The Eurozone also fails because of Germany's fear of inflation and the austerity measures being taken by several European nations.

[Avaerilon]

Avaerilon has a strong currency that we have maintained for nearly 2,000 years, and we do not, at this time, feel the need to join any single market. We are, however, pleased to trade with any single market, should one occur.

@narg: The Eurozone is actually a great idea; it hasn't been well-executed because of, as Franco says, a lack of centralisation. Also, German taxpayers are quite happy to have cheap holidays in Greece or Spain, but shudder at the idea of their tax going towards other economies. The same sort of thing can be seen elsewhere. If there was a more common and unified monetary policy, the Euro could potentially be one of the world's great currencies. At any rate, it is still a young currency, and there is plenty of time for it to prove itself yet.

[Deleted]

Cemaes are interested in the idea and its Cabinet have voted in favour of the principle of joining this common currency area.

[Deleted]

A quick referendum taken in a park shows the people of daydreamtopia are in favour of a common currency.

[Deleted]

So any ideas for the name of the organization, currency, and the location of the HQ.

[North American Republics]

We may not be in the union, but how would the "Fraceday" work, as only the Franco-Lowlands, Cemaes, and Daydreamtopia are going to be involved, for the currency name.

[Administrator]

Azerzia is tenatively interested in such a common currency. We propose Unian or Sluan as a name. We would be curious about centralized policies and how the transition would occur

[Deleted]

Hmm... The Denarii has only ever been used as a trade medium with non allied worlds/countries in the EAF as most things are bartered for or supplied free by government such as neccesitys like water and food. But premium (non-essential) products are bought with denarii, which people work for. But would a common currency work like the euro? Which is dying as there is a huge area with exactly the same currency meaning good profit is hard to make between the countries.

[Deleted]

As committed internationalists, the Federal Republic of Cemaes have showed willingness to host the location of any new central bank.

They have proposed that Tenby, one of its 15 provincial capitals and which is an economically vibrant, coastal city, be considered for the role.

They have deliberately avoided proposing Cemaes' Capital City Loveston for the position as it felt it essential that any potential new base for a new pan-SLU central bank be located away from any national capital city so it can be seen on its own merit and not that of the host nation.

[Kingdom of Grolsch]

The Kingdom of Grolsch are interested in the common currency, provided the treaty for such currency includes the following:

1. A legally enforceable maximum annual deficit of 5%
2. The legal possibility to enter and exit the currency
3. Rescue mechanisms in which all member states contribute to a common fund

As a country with a relatively undeveloped financial sector, we aren't confident in our ability to host such an institution as a common-currency central bank.

@narg: The Eurozone hasn't "failed". As Avaerilon said, the execution just isn't perfect. It is still a young currency and we need to give it time. Also remember the Eurozone, technically speaking, is in a better shape than Japan and the US. The US has had a budget deficit of 8%+ in the last three years excluding Medicare/Medicaid. The US deficit is about on par with Greece's, but the US is just lucky to have a reserve currency so it can print unlimited amounts of money. It uses that ability to the max. The Eurozoine, I think, needs a common financial market and it needs to enforce all treaties related to it. The second thing hasn't been done in the few good years the Euro has seen. Now we see the result. Not like Greece should have ever been allowed to join the Euro, but the story on how they were allowed to do so eventually and the accounting tricks they used is for another day if you want to know...

[Deleted]

I accept all of Grolsch's demands. Cemaes can be the home of the headquarters. I think that there should be different groups in this organization, such as an emergency fund for member nations, an international development fund, and a committee to regulate corporations.

[Deleted]

Yeah sorry about my stupid head and my inactivity. I only get my news via NPR so from what I've heard its not doing so well. Ps sorry for my inactivity I have Been addicted to xbox minecraft. Ps my house is amazing ad from all the time I've played I have a full 64 stack of diamonds :D

[Deleted]

Should we set a limit to the amount of government debt to gdp?

[Kingdom of Grolsch]

We should, provided we set an exact method of determining the calculation of said ratio. Most governments tend to use very advanced trickery in calculating the debt/GDP ratio, making the measure totally unreliable.

[Deleted]

Is there a simple way for us to find out the member nations debt/GDP ratio?

[Kingdom of Grolsch]

That depends on realism, of course ;). Of course, we can set a base rate, and then the rate can change through trade, budgets, lending etc.