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Coin CurrencyLast update: Saturday 19th of May 2012
The New England colonies (Connecticut, Massachusetts Bay, New Hampshire and Rhode Island) accepted each other's paper money as legal tender in all of them. They voluntarily accepted a money supply limitation which forbade them to print more than 6 Franc coins per capita (the four were: France, Belgium, Italy and Switzerland). There was no single currency like the Euro. Countries maintained their national currencies (coins), but these were at parity with each other. After the goods where exchanged for the currency of the Union must be convertible to other currencies at a given (could be fluctuating - but always one) exchange rate determined by a uniform exchange rate policy. This must apply all over the territory of the single currency - otherwise, arbitrageurs will buy it in one place and sell it in another and exchange controls would have to be imposed, eliminating free convertibility and inducing panic. How purchasers of a currency looks at a particular country using these parameters, will determine the demand for a particular currency. Lets take a look at these factors. The LMU seriously flirted
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