Do the premises match the conclusions?

Mar 25, 2013 2:09 AM

Offline

May 2008

Well throughout this series and similar series, like spice and wolf, there are lists of premises which have conclusions shortly after. Episode 11 had one I just could not follow. Where Dragon Princess was able to figure out why the kingdom created a new currency.

I could not follow and was forced to accept Dragon Princess's conclusion. So I would like to know if anyone is able to follow the premises, and that I'm dumber than Dragon Princess.

I want to be as smart as young merchant. :(

Mar 25, 2013 5:12 AM

htsuji

Offline

Mar 2013

698

Facing the abnormal inflation of prices, the Central Kingdom and the Church have gone to a situation that they literally make more money to buy foods and resources. Generally, a gold coin has its own value supposed to be stable and thus it can be a measure of other items' value. But, the value of gold (material) and a gold coin (currency) don't always equal to each other. Governments often make gold coins that really are made of alloy of gold and copper, silver or other cheaper metal and yet their nominal values are decided to be the same as old gold coins so that they can buy more goods.
As for Maoyuu, the Central Kingdom made a decision approved by the Church that they recoin 1 old gold coin into 1.4 new gold coins where the new one's officially defined value equals to 2 old coins.
This kinds of monetary policy usually don't work well because people wouldn't like to exchange coins already they have for new diluted ones. They hide and keep them. But this time, in the name of the Church, the Kingdom is planning to forbid people both keeping and using old coins. If you refuse that, you'll be a criminal or possibly a hectic. Not only common people but also lords and nobles must give up old coins and accept exchange.
But alas... In my opinion, even though it seems a drastic action for the Kingdom to impede the inflation, it is still like a drop of water on burning rocks. I somehow feel sorry that any secretaries of the treasury of the kingdoms have never experienced that rapid inflation. It is not a completely wrong idea but the operation must be performed with some treatments to ease side effects. Those who are forced to exchange their gold coins realize that it is now reckless to accept them as a payment when they sell something.
Merchant Youngster said earlier, "We are not buying wheat but selling gold coins," which means he knew he must push selling the gold coins away as many as he could because they were going to be worthless (or rather, I have to say he planned that). Now, almost all of the gold coins the Alliance ever had are sold to some stupid lords and novels in the Central Kingdom.

Winter Kingdom's new ministry of treasury, who met Merchant Youngster, noticed that gold coins (both new and old) are going to useless as a currency because their value is not stable or reliable anymore and crops (and potato) will be a new currency; and that it was designed by the person in front of him.

htsujiMar 31, 2013 9:28 AM

Mar 31, 2013 3:03 PM

greenmarty

Offline

Dec 2010

1087

To make it short ( as possible).
Merchant caused inflation by exchanging coins for various goods. He even prepared documents for purchase of next years wheat etc to get rid of gold coins which cased them to lose value.
Central nations tried to counter effects of inflation by printing more money (making them in case of metal) to be able to buy needed recourses.
But printing more money can worsen inflation even further.
In time of high growing inflation people rather use foreign stable currency but there was no other currency in their world. So he wanted to make new one.
Foreign exchange rate would be based on demand and supply of both currencies which is influenced by import / export and foreign exchange policies , same way it works in real world with hundreds of currencies.

(Other option would be for ppl directly exchange goods for other goods or use one or more commodities with set value as means to pay.)

greenmartyMar 31, 2013 3:15 PM

( Currently interested in OP MC genre. Recommendations are welcomed, preferable those yet not on my list )

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