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You are reading an article written by a citizen of eRepublik, an immersive multiplayer strategy game based on real life countries. Create your own character and help your country achieve its glory while establishing yourself as a war hero, renowned publisher or finance guru.

A Plea to Money Marketeers

Day 2,686, 18:45 • Published in Netherlands USA

• by Actinide

Friends, Dutch, countrymen, lend me your ears!

I, Actinide, am the resurrection of a dead citizen of the eUnited Kingdom. In that country, the money market became very volatile during my tenure. Originally, the price for 1 GBP was .005 gold. Then, though, its price rose to .006 gold, and the other side of the money market began compensating. 1 gold lost value from 200 GBP to 170 GBP.

At the current time, our (the eDutch monetary market) is imbalanced such that gold is overvalued compared to the guilder. Money marketeers are gradually compensating for this gap by lowering the price of gold in guilders. However, this is exactly what was happening in the eBrit scenario before the increase in the price of the guilder that screwed up everything.

So I make a plea to all money marketeers: don't raise the price of the guilder! It will screw up the entire monetary market for weeks, if not longer. Let the price stay at 1 gold = 200
Sincerely,

Actinide

20-8-5 12-15-22-5 15-6 13-15-14-5-25 9-19 20-8-5 18-15-15-20 15-6 1-12-12 5-22-9-12

Comments

odan Day 2,687, 01:29

all money is equal across erepublik. in the past it wasn't that way but that was changed years ago.

Trannsvaal Day 2,687, 05:45

Supply and Demand. You cannot control a market without Plato interfering.

Weekstrom Day 2,687, 08:23

The current price of gold is high compared to something like 6 months back when gold was valued at around 170cc.
About 3 years ago however gold value topped at around 3.000cc. The warning signs you see seem a bit late as ever since then until say 6 months ago gold was sliding down....

Actinide Day 2,688, 17:34

Wow! 3000 cc per gold? That's incredible. But if gold was sliding down from there, then going from .005 to .006 gold per NLG seems inevitable (all other things, including djirtsdew's point about Congress's ability to print money, being considered equal).

djirtsdew Day 2,688, 06:09

Money can be printe😛 200 NLG for 1 gold. So if 1 gold can be bought for 170 NLG, congress can reconvert it to 200 NLG, leading to big profits.
Because all currencies are indeed the same, all congresses will start converting gold to NLG if the price drops below 200 NLG/gold, quickly saturating the market with NLG again.
As a consequence the price of gold increases again to more than 200 NLG/gold. So typically the price of 1 gold will remain somewhere above 200 NLG.

Actinide Day 2,688, 17:32

Fair enough. As a matter of fact, that would explain everything. Great Britain's CP had committed a PTO and stolen the entire treasury, making money-printing impossible. Good insight.

Trannsvaal Day 2,688, 18:31

Which is old knowledge as the new rewards in currency for certain medals are flooding the market with cash again.

djirtsdew Day 2,688, 23:57

Yeah, you're right that printing probably is not needed anymore. I'm not sure if the admins changed the right amount of medals so that the printed amount is created through these medals. If so, this would be a stable equilibrium.

Otherwise, it might be unstable to the direction where 1 gold might become worth 1000 NLG again.

In any case, there's no reason to fear 1 gold becoming worth less than 200 NLG.

djirtsdew Day 2,688, 06:10

Hidden message: The Love of Money is the Root of all Evil

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