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Business Currency Currency Currency Home Idea MakeLast update: Saturday 19th of May 2012
4. The Spot Market The first truly modern example would be the monetary union of Colonial New England. Two additional conditions apply: that the exchange rate be effective (realistic and, thus, not susceptible to speculative attacks) and that the members of the union adhere to one monetary policy. To what degree does political corruption exist within a country? To what degree are politicians addressing a national debt problem? Are politicians causing an increase in it's value. The second, more important, experiment was the Latin Monetary Union (LMU). 2. Futures Tax cuts can stimulate the economy, as long as the consumer spends the extra money he or she may have. But also, tax cuts which are to large can result in an increase in the national debt? In a democratic society, national debt must be paid by the taxpayer. You simply can not have a growing economy during war time. So war lowers the value of a countries currency. Actually, history shows that the condition of a single currency, though preferable, is not a sine qua non. A union could incorporate "several currencies,
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