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Currency ChangesLast update: Saturday 19th of May 2012
Officially (and really) a gold standard developed throughout Europe and included coin issuers such as Germany and the United Kingdom). Still, in the Latin Monetary Union, the quantities of gold and silver Union coins that member countries could mint was unlimited. Regardless of the quantities minted, the coins were legal tender across the Union. Smaller denomination (token) silver coins, minted in limited quantity, were legal tender across the Union. Smaller denomination (token) silver coins, minted in limited quantity, were legal tender only in the issuing country. What is a monetary union? Is it sufficient to have a single currency with various denominations, each printed by another member of the Union. What seems to be more important is the relationship (as expressed through the exchange rate) between the Union and other economic players. 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
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