NationStates Jolt Archive

Please support my proposal, the Exchange Rate Ceiling. This way, people will not be able to get robbed by the government with high exchange rates! It says that exchange rates cannot be higher than 10%(0% would be a "perfect machine" for the people who get their money exchanged). Thank you for your support.

Do you have the slightest clue what an exchange rate is, or how it arrives at its value, or how it comes to exist in the first place?

I seriously doubt it.

This is basic economics, buster.

Well, if you can have rent controls and minimum wages, why can't you, in theory, have minimum exchange rates?

Nonetheless, this would probably have strange, unforseen, and probably extremely detrimental consequences, so Bootai-Bootai will not support this resolution.

Well, if you can have rent controls and minimum wages,

But you can't--at least, not rationally or morally.

Certainly, if you're willing to reject reason, reality, and morality you can create such institutions. But I'm not willing to do that.

No, it's a maximum exchange rate, I think, unless exchange rate is the amount that you get back... Not sure about that, and yeah, it's pretty much poorly worded.

Please support my proposal, the Exchange Rate Ceiling. This way, people will not be able to get robbed by the government with high exchange rates! It says that exchange rates cannot be higher than 10%(0% would be a "perfect machine" for the people who get their money exchanged). Thank you for your support.

If a zero exchange rate is what you desire, then why not propose a single unified currency? This as such is a proposal to 'fiddle' with the system, not a proposal to fix it (for better or worse). The Confederacy of Alphared will not support it.

No, it's a maximum exchange rate, I think, unless exchange rate is the amount that you get back... Not sure about that, and yeah, it's pretty much poorly worded.

The exchange rate is the difference in value between two currencies. For example, one British pound is worth about US$1.80. This isn't the same as the charge that banks put on money-changing transactions, which is what your proposal wants to limit.

Limiting the exchange rate would essentially, as mentioned above, enforce a single world currency, as all units of money would be worth the same amount.

No, it would prevent, say, the Euro(at .90 USD if i'm not mistaken) from getting below its current value, to avoid clashing with a dollar. Although it's not what I mean, at least it would encourage uniform currency... i'm not sure...

You ever hear of inflation?

(Oh look, G Bugles is gone! Remember, kids, whenever a pro-market libertarian uses the word 'morality', somewhere a fairy dies.)

(Oh look, G Bugles is gone! Remember, kids, whenever a pro-market libertarian uses the word 'morality', somewhere a fairy dies.)

:lol: :lol: :lol: :lol: :lol:

I remember when Ithuania (anarcho-capitalist) insisted in a debate that his was the one true objective morality (whilst calling everyone else a moron). He was asked to prove it, and, to my knowledge, never posted in the thread again.

EDIT: come to think of it, I don't think i've heard from him since. He also doesn't show on a forum search or a world search - does anyone know if he was deleted or did he just let his nation die?

G Bugles was the reincarnation of Ithuania. Give it a week or so and he'll be back. Maybe he'll justify his views next time.

Maybe?

Nah.

Please support my proposal, the Exchange Rate Ceiling. This way, people will not be able to get robbed by the government with high exchange rates! It says that exchange rates cannot be higher than 10%(0% would be a "perfect machine" for the people who get their money exchanged). Thank you for your support.
Good in theory but so was communism and just looked what happend to that. :D

Good in theory?

[Kamquin Dakar, Rehochipean Minister for Trade and Industry, chokes on his glass of water.]

Um, what we were meaning to say is that there are a good number of highly successful communist nations in NS.

Wow Ithuania reincarnating himself as G Bugles completely passed me by.

Basic economic theory tells us that exchange rates, when left alone, will end up at prices that facilitate mutually beneficial trade and capitalize on nations' comparative advantages in production. An exchange rate ceiling (or floor) is a misguided proposal and would be detrimental to the economic prosperity of the entire world.