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Unread 16 May 2007, 05:47   #30
Tietäjä
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Location: Finland
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Re: 'Base interest rate' and capitalism

Quote:
Originally Posted by Ultimate Newbie
That doesnt make sense.
One of my hapless moments, eh!

Quote:
Originally Posted by Dante Hicks
Having said that, it's still important. There's probably some research on this already but I'd assume once you reached the stage where more than 5% of (physical) currency was forged you'd start seeing serious side-effects to the economy (i.e. people using dollars instead of your currency or whatever).
Yeah, you'd probably get hit by credibility issues there too. Although, it could just result in people reverting more to plastic money (unless 5% o the economy's credit cards are stolen). And moving on to dollars in a country where a dollar isn't the mainstray currency wouldn't be of a great option either. First, you'd need to have the given dollar as an official currency, after that there'd be massive menu costs for enterprises, from shops up, to change their scheme from the original currency to dollars.
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