Debate | Do we keep the AINERO?

I like luug idea.. I think it's time for the AIN to go down the monetary union path. It might simplify things..

Stock Exchange :O

Oh noes you didn't

lol @ Forth

http://www.aoin.eu/t4732-thomas-minister-for-innovation-trade-and-investment#57464

Yes, I did. The stock exchange has been planned for a while.

Let's see where we go with this. I think I would like to appoint a Monetary Commissioner who would deal with the AINERO and any future monetary union. Personally I think regional ones would be a very good idea.

Based on the CJ Sections? or blocs?

Regional currencies? pffff no way with Shush.

oh I am not doing this, with Syldavia

At least there is a new stock exchange instead of using the AINERO currency.
-------------------
Now there is some economic competition between the member states instead of being restricted to the AINERO.

So is this on hold?

Evillions wrote:At least there is a new stock exchange instead of using the AINERO currency.
-------------------
Now there is some economic competition between the member states instead of being restricted to the AINERO.

The AINERO is not supposed to restrict trade, but to make it easier!

Wikipedia:
The most obvious benefit of adopting a single currency is to remove the cost of exchanging currency, theoretically allowing businesses and individuals to consummate previously unprofitable trades. For consumers, banks in the eurozone must charge the same for intra-member cross-border transactions as purely domestic transactions for electronic payments (e.g., credit cards, debit cards and cash machine withdrawals).
The absence of distinct currencies also removes exchange rate risks. The risk of unanticipated exchange rate movement has always added an additional risk or uncertainty for companies or individuals that invest or trade outside their own currency zones. Companies that hedge against this risk will no longer need to shoulder this additional cost. This is particularly important for countries whose currencies had traditionally fluctuated a great deal, particularly the Mediterranean nations.

Another effect of the common European currency is that differences in prices – in particular in price levels – should decrease because of the 'law of one price'. Differences in prices can trigger arbitrage, i.e. speculative trade in a commodity across borders purely to exploit the price differential. Therefore, prices on commonly traded goods are likely to converge, causing inflation in some regions and deflation in others during the transition. Some evidence of this has been observed in specific eurozone markets. (For example many Finns buy their cars from Germany directly)

The consensus from the studies of the effect of the introduction of the euro is that it has increased trade within the eurozone by 5% to 10%. On the lower bound, one study suggested an increase of 3%. A recent study estimates this effect to be between 9 and 14%. Nevertheless, a recent meta-analysis of all available studies suggests that the prevalence of positive estimates is caused by publication bias and that the underlying effect may be negligible.

Additionally a study suggests that the introduction of the euro has had a positive effect on the amount of tourist travel within the EMU, with an increase of 6.5%

• No exchange risk between countries
  
• Price level stabilisation (increased competition with domestic and foreign companies)
  
• Increased trade and tourism due to easier money transactions

I guess if we want to make this AINERO a working currency at least in some level, it'll take more time to set rules of its usage and purpose.