International Currency Exchange

[Mergerberger II]

Considering that the "Nordic Gold" is an absolutely ambiguous quantity and as realistic as the El Dorado... >_>

Back during the first Nordland, when it was only BR and Martens, they RP'd finding a massive amount of gold (whose origin I don't recall), and they have stored it in Prussian banks ever since, where it has been backing Nordlandic money since its discovery.

I am going to agree with you that we oughtn't have a currency market as it only overcomplicates things and people will end up doing it wrong and ruining the entire concept.

[Maelstrom Vortex]

Right, so, based on some of the IRC and non-IRC talk, here is a proposal for how to do a base currency exchange (not for all individual nations, I suppose we can discuss that as we go on).

The strongest currencies in the world would be as follows:

1. Viniland's (whatever)

2. Rebel Army's Rebel Credit

3. Bavaria's (whatever), HEU's Hanseatic Mark, Prussia's Thaler

Bavaria's (whatever) = HEU's HM = Prussia's Thaler << "Base currency (BC)", similar to the USD

1.5 BC = 1 Rebel Credit

2 BC = 1 Viniland's (whatever)

0.66 Viniland's (whatever) = 1 Rebel Credit

Sound good? :v

*laughs at this assessment* I back every single piece of currency in the Empire with some form of raw material or equity asset through the sovereign wealth fund. Where would you put the Talon?

They're even backed by Rebel Credits purchased back when the RA was a dust bowl and its currency made Iraq or Zimbabwe look lovely. This scale is horrible. Developing an actual currency valuation would be a challenge in RP because there's no real tangible means of measuring assets.

Edited July 10, 2009 by Maelstrom Vortex

[V The King]

They're even backed by Rebel Credits purchased back when the RA was a dust bowl and its currency made Iraq or Zimbabwe look lovely. This scale is horrible. Developing an actual currency valuation would be a challenge in RP because there's no real tangible means of measuring assets.

This. And you bet a lot of people would suddenly pop up with bazillions of oil barrels, gold bars, platinum... I d'nno, pick your poison. Also there'd be a lot of "no, MY currency should be stronger!", etc.

[Maelstrom Vortex]

I can't think of any time it does...

Regardless, there are a thousand things that go into currency value, none of which are represented in game except size of economy (infra) and tax rate, which are both pretty meaningless.

In fact, infra, tax rates, and technology have little real impact on Currency valuations at all. It's a comparison of notes issued versus economic GDP. Given we will never know how much of each type of currency is issued we can't possibly know its strength relative to quantity.

[iamthey]

The biggest national economies in CNRP are currently Viniland, Rebel Army, and Bavaria. So more or less, they would be the equivalent to the "pound", "dollar", and "euro" of the real world (which is which is up for everyone else to decide, I vote for them in the order I presented).

That isn't how currency exchange rates work. The UK doesn't have anywhere near the economic capacity of the united states but they still have the most valuable currency in the world. And even when they are included in the EU their currency is still more valuable than the euro. Currency exchange rates are based on the relative purchasing power of a currency within an economy. It is decided based on the amount of goods and services available relative to the amount of money in the supply. The US could have a currency ten times its value though it would have to enact deflationary policy to do that. So I don't think exchange rates should be based on the size of a nation in CNRP as thats not how it works at all. People should just start specifying monetary policy or not RP currency exchange rates. Also having the highest valued currency isn't always a plus, it means debts are difficult to pay and wages and salaries go down; though it also means investment and savings are safer. Conversely inflation makes debts easier to pay, but depreciates savings. There is no real value to having a very valuable currency to a very low currency as volume always makes up. The key is having a steady monetary policy.

If we want to really set a currency exchange rates, we should have a formula that is based on tech, and infastructure which determines a sort of GDP, then allow people to issue notes from their central bank and allow the ratio of GDP to issued notes to determine the value of their currency. I experimented with this with my swiss franc a private currency issued by the swiss royal bank backed by a large gold reserve left behind by the nords (since merger was their money person and his capital was Switzerland). Using RL gold exchange rates I made a currency roughly the value of the UK's pound. This could be done with our fiat currencies using a GDP constant based on a formula.

Also merger; gold standards are bad as national currency standards. As pegging it to gold inherently fixes the value and limits the size of the currency even though the economy is expanding its total amount of goods and services. Money increases in value to a point where old debts are unbearable or impossible to pay. This makes the inccuring of debt an undesirable venture as even if you successfully establish a business ten years from that point you will be losing a lot as the goods you produce will be worth less and the relative value of your debt will have increased. Fiat currencies that are properly managed are always going to be more effective tools as monetary policy can be adjusted to keep a steady valued currency as the economy expands and contracts. It can also be used as tool to encourage growth as well as slowly unwind bubbles in the economy. Gold standard currencies are good as hedges, for savings so as long as it is not the primary currency in an economy it is good.

Here is a GDP formula we used in CNRPR if anyone is interested. According to this my nation would have a GDP roughly what I predicted it at (about 2.7 Trillion) Mergers would just add their respective GDP's together. Then I would issue notes at a ratio of this and that would determine both the value of the note and the total amount of currency in the money supply. So I could issue at a ratio of 1:1 (Notes:GDP unit) and it would have a value equivalent to a USD, or issue at a rate of .5:1 and it would have a RL value of double the USD ect.

Base: (Avg. Gross Income Per Individual Per Day) x Citizens x 36500 x Infra Multiplier

Infra Multiplier Formula

Base: (Avg. Gross Income Per Individual Per Day) x Citizens x 36500 x Infra Multiplier

Infra Multiplier Formula

0-500 Infra Chronically Underdeveloped economy: 0.8

500-1000 Infra Severely Underdeveloped economy: 0.8

1000-2000 Infra Underdeveloped economy: 1

2000-4000 Infra Developing economy: 1.2

4000-6000 Infra Burdgeoning economy: 1.4

6000-8000 Infra Vibrant economy: 1.6

8000-10000 Infra Economic Powerhouse: 1.8

10000+ Infra Industrial Super Power: 2

Edited July 10, 2009 by iamthey

[Bacharth]

Norman economy is based completely on french bread.

[Stefano Palmieri]

Absolutely no currency exchange markets, for the love of god. Its developments, change in prices, supply and demand are quite complicate in fact and are consistently affecting a country's economy in a daily basis. Considering that almost every RP'er here skip the economic aspect of a nation, I believe we can't suddenly emerge in such a complex and specific area.

*Puts hand up for skipping the economic Impact*

I dont do it because I dont get economics. This would be handle in some cases and an absolute pain in others.

[Vedran]

For the sake of simplicity I use numbers for my currency that are equal to the real life US dollar. If a sandwich costs $4 USD it will cost $4 in my nation.

Like others have said, I feel that adding a currency market would complicate things too much.

[Sabioviejo]

Our nation currency is the toothpick. Its exchange rate is 1 tree against 123,456,789 toothpicks.

To be totally serious, this does add a depth, but it also complicates things, as a solution, just add a fixed exchange rate for those not interested in RP'ing this (me), everybody else can RP with it.

[Centurius]

Oh, OK. they do allow the use of the Euro, though, right?

Nope when I went there I still had to exchange my euros for pounds.

Regarding the matter on topic, please no currency rates we are attempting to decrease the ooc whining not increase it what this would do.

[Cataduanes]

To be totally serious, this does add a depth, but it also complicates things, as a solution, just add a fixed exchange rate for those not interested in RP'ing this (me), everybody else can RP with it.

sounds like a suitable compromise.

Nope when I went there I still had to exchange my euros for pounds.

Indeed, it will be a while before the Euro becomes a reality in the UK.

[Sir Keshav IV]

My scale is- 1 Chinese Rupee= .5 Pounds RL.

[Prime minister Johns]

Since the game mechanics place equal value on the currency used, and there is no exchange rate in-game.

CNRP should mirror the in-game mechanic for the sake of simplicity.

If a player wishes to have a different exchange rate then they can, but their actual spending power should be based on their in-game budget.

[Sabioviejo]

Since the game mechanics place equal value on the currency used, and there is no exchange rate in-game.

CNRP should mirror the in-game mechanic for the sake of simplicity.

If a player wishes to have a different exchange rate then they can, but their actual spending power should be based on their in-game budget.

If we mirror everything we should start our own copy of CN .

[Botha]

Since the game mechanics place equal value on the currency used, and there is no exchange rate in-game. CNRP should mirror the in-game mechanic for the sake of simplicity.

This. There is no need to have exchange rates except to further confuse peeps through further rules complexity. All currencies should match currency values in-game, i.e. 1 Transvaal rand (florin) equals 1 unit of everyone else's currency.

[MercyFallout]

This. There is no need to have exchange rates except to further confuse peeps through further rules complexity. All currencies should match currency values in-game, i.e. 1 Transvaal rand (florin) equals 1 unit of everyone else's currency.

Meh. I guess that works.

Then 1000 of mine = 1 of everyone else's (I've always RP'd mine as 1000x the standard currency).

[Botha]

Then 1000 of mine = 1 of everyone else's (I've always RP'd mine as 1000x the standard currency).

Why? Not to sound like a party pooper but really what difference does it make whether someone's rupeemarkdollar equals 1 or 100 or 1 billion of someone else's kwachaflorins? Sometimes all these nitpiky rules makes RPing difficult. Keep it simple!

[Lynneth]

Why? Not to sound like a party pooper but really what difference does it make whether someone's rupeemarkdollar equals 1 or 100 or 1 billion of someone else's kwachaflorins? Sometimes all these nitpiky rules makes RPing difficult. Keep it simple!

Some simply like the flavour of having a currency different from the others.

I for one generally RP that 1 M = 1.1034 $

but I don't force it on others and do it purely for fluff.

[Botha]

Some simply like the flavour of having a currency different from the others.

I guess so.. but what's the point if you're always going to have to indicate its exchange rate anyways in a value that everyone else can understand? I suppose some people admire having Zimbabwean banknote values.

[Subtleknifewielder]

I guess so.. but what's the point if you're always going to have to indicate its exchange rate anyways in a value that everyone else can understand? I suppose some people admire having Zimbabwean banknote values.

tI's like character RP's; in the grand scheme of things, they don't mean a lot, but they add a little detail to your nation thatwas lacking before.

Edited July 10, 2009 by Subtleknifewielder

[Lavo]

They're even backed by Rebel Credits purchased back when the RA was a dust bowl and its currency made Iraq or Zimbabwe look lovely. This scale is horrible. Developing an actual currency valuation would be a challenge in RP because there's no real tangible means of measuring assets.

Unless you had Rebel Credits from before the war, there is no possible way you could have gotten Rebel Credits then, as there was no printing presses and the government pretty much took any remaining/available Credits for itself. After most of the rebuilding (second to last phase or so) was done, Rebel Credits were reintroduced into the market, and at that point they were at a decent strength, albeit not what they are now. Anyways, making a currency exchange is just a massive pain and adds pointless difficulties and variables to CNRP.

[HHAYD]

Currency exchange is useless in CNRP unless if we can fix two major problems:

1. The insane spending of some RPers. It doesn't seem realistic seeing nations under 20k NS walking around with trillions of dollars.

2. Economics. There are some RPers who mass spend, throw money around like if it was nothing, has closed economies, and yet still claims to have a decent economy.

[V The King]

-snip-

Meh, no need to add the infra multiplier - 'tis better without it.

Anyways, 1 Vinilandese Lira = $1.

[Manetheren]

In fact, infra, tax rates, and technology have little real impact on Currency valuations at all. It's a comparison of notes issued versus economic GDP. Given we will never know how much of each type of currency is issued we can't possibly know its strength relative to quantity.

That is what I'm saying. There is nothing in game that is slightly relevant to currency value. And if we try to calculate it everybody is going to do what BR is doing and say "I have lots of gold so I win." That is cool, but in reality (you guys probably spend at least 10 minutes in it a day) a gold standard was nice in 1800 but if you want to grow a modern economy you have to use fiat currency. Also, we can all say whatever we want about how much we have.

I always RP that my currency is the same as a 1920 US dollar, but that is because all my population statistics and such is 1920 levels. (That is what a 1920 dollar could buy is equivalent to what my currency can buy. If a car cost 12 dollars in 1920 then a car costs 12 marks in Tahoe. It really is meaningless)

[Sargun II]

12 marks? good god almighty