Proposal | Union Monetary Fund creation

Nowadays, some Nations have monetary and financial problems that can result in bankrupcy of that countries. European economy is very vulnerable at moment and some countries asked the EU and IMF for help. We all know that AINERO and AIN countries are stable at moment because of our anti-crisis politic but we are not safe from the current crisis, so I purpose here the creation of a Monetary Fund to help some AIN country that can drop to bankrupcy and infect the most vulnerable countries. This will be resumed in hust 3 basic laws:

1. The Monetary Fund will only help that country if there is a really need and after the evaluation of the Nation Economy and Finances state by union specialists. The countries that requests help should only ask for it if them GDP produced in a year is not enough to pay the anual debt. The Monetary Fund should help with 150% of the GDP produced in a year by the respective country.

2. Each AIN country that signed this proposal will help according with the GDP capacities the other country.

3. A topic in the AIN Bank forum should be created where the information of the fund will be provided and where countries should ask for external help.

WARNING: Countries that wwill not sign this treaty will not receive help if they need it.


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MEMBER COUNTRIES THAT WILL SIGN THIS:

-Fairview;

MiguelLeal wrote:We all know that AINERO and AIN countries are stable at moment because of our anti-crisis politic but we are not safe from the current crisis

I'm pretty sure this is a contradictory statement.

The Federal Kingdom of Lower Columbia is not interested in signing this treaty.
-Peter Hakamoto, Chancellor of the Exchequer

I understand what you're saying, but I would like to point out a problem. Almost nobody ever roleplays a financial crisis, which could make the bill a redundancy.

The only example of a financial crisis I've ever seen is the recent Gansbaai updates. As Daniel says, nobody ever roleplays the collapse of a nation unless they plan to abandon the country.

I understand the creation of this idea Miguel but I have to point out one major flaw in your plan. The EU Eurozone shares one currency but also has one central bank that sets interest rates for the zone as a whole something that the AIN does not as we do not have an exchange rate mechanism (ERM) or an alliance central bank that has the power to set interest rate. Until such a time as reform or creation of a union central bank happens this is a moot idea..

I think we should create an Union Central Bank.

I think that we have to remove the "AIN Bank" section to avoid confusion if that were to happen.

How would a Union Central Bank earn/get/find money?

Don't know... We just have to think. It would be a great idea, we would increase the economical realism and roleplaying. Who has any idea how can a Union Central Bank earn/get/find money post it?

I'm investigating that ATM and will get back to you..

If and I say if a AINERO zone would be established it would be on a purely opt in basis...

I don't believe that making it a compulsory thing would be good, but I could also see the benefits of it for role playing ie: simplicity in financial transactions, adding more dimensions to the role playing surrounding a central bank.. and even if half the countries signed up to only use the AINERO and to give up their national currencies it would make it a hell of a lot easier and less confusing to make deals and not have to go through huge conversions to find out what it costs. I think it would be a good thing to get more people to use the AINERO as at the moment the AINERO does not operate like a true currency it operates only as a Financial instrument. It has no real basis in the union. IMO its either we move down a path of discussion on the Future of the AINERO with a true single currency the final product or we consider that we kill the AINERO off as it ineffectual for role play and does not work in the current system. There is no point printing AINERO money or having an AIN bank if it isn't backed up by something else. It is only a small loss of sovereignty but the potential role playing gains could be huge.

I do agree completely with Jo here, and probably would support it's introduction.
However, my nation will have nothing to do with it, because it would be unrealistic for Cattala to turn away from the Euro, but then accept the Ainero in this greater role.

Ok... let say I understood. Well I did, but it was long... 'cause I'm not good with economy

I agree with Neil, Jo and Thomas on this.