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Currency CollectorsLast update: Saturday 19th of May 2012
5. Spread Betting The first truly modern example would be the monetary union of Colonial New England. To what degree do political affairs have on the economy of that country. A poor economy results in a decrease in it's value. This is true whether you are talking about the degree of demand for a currency. The Union had no money supply policy or management. It was left to the market to determine how much money will be in circulation. The central banks pledged the free conversion of gold and silver to coins. But, this pledge meant that the Central Banks of the participating countries were forced to maintain a fixed ratio of exchange between the two metals (15 to 1, at the time) ignoring the prices fixed daily in the world markets. As the LMU was being formed, in 1867, an International Monetary Conference was convened. Twenty countries participated and discussed the introduction of a global currency. They decided to adopt the gold (British, USA) standard and to allow for a transition period. They agreed to use three major "hard" currencies but to equate their gold content so
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