Currency System

[Sabotage]

To me it just seems a bit weird that in the modern ages, civilisations are still using gold pieces as currency.

Just a suggestion, but I recon that after Currency is discovered, a nation would switch to the Yen, Mark, Dollar ect ect. It would be, IMHO more realistic if a nation was to earn $15000 per turn instead of just 15 gold. Can you honestly imagine a civilisation with about 21 cities earning 15 gold? That's less than just 1 gold piece per city. What are those damned taxmen doing?

With the new currency system, maybe a simple "World Economics"
model can be introduced. Maybe...

 

[gonzo_for_civ]

it's a good idea but you must remember civ3 can't apply to real life. 15 gold is good(not really) in civ3 but no civilization could survive on it in real life. I think the system is good, it allows everyone to percieve the value of a gold piece differently.

 

[etj4Eagle]

Also along with gonzo you have to remember that if you put in Yens Dollars and whatnot, then you would have to incorporate exchange rates. However, the use of the gold represents a common valuation system for all the different currancies. You are collecting your taxes and paying out money in currency, however, for ease of comparison sake those payments and collections are all converted to gold.

 

[Informer]

I agree with etj4Eagle, our currency is actually still based on gold, and gold is traded into different currencies depending on how much gold a nation has in its possession. It would in fact be unrealistic and probably too complicated to switch to different currencies in the game.

Even if this was however implemented, how would it be possible to trade amongst nations?

 

[FredLC]

Originally posted by Informer
I agree with etj4Eagle, our currency is actually still based on gold, and gold is traded into different currencies depending on how much gold a nation has in its possession. It would in fact be unrealistic and probably too complicated to switch to different currencies in the game.

Even if this was however implemented, how would it be possible to trade amongst nations?

I could be wrong... but i think that the value of currency is no long based on gold storages. Instead, it's based on the amount of productivity of the nation, being the storages just security reserves that allows interference in the market to balance values... in other words, just for reference.

Does anyone here works with economy to tell us for sure?

 

[miltonfriedman]

Gold has no value whatsoever in terms of currency exchange. All exchange rates are based on arbitrary valuation, the amount of gold a country has in reserve is irrelevant.

 

[Curufinwe]

In the game 1 gold peice means far more than 1 dollar or some other comparable amount. It is a representative of far more and look at the GNP in F11 to see a comparison of how you're doing, should be a lot better.

 

[Traquenard-fx]

Originally posted by fredlc


I could be wrong... but i think that the value of currency is no long based on gold storages.

Does anyone here works with economy to tell us for sure?

You have it totally right here.
My optional class of economy is usefull here.
All based on valuation of the money no more gold came in currency valuation since years 70 or before ( not sure)

 

[etj4Eagle]

Yes currancy is no longer valued in gold. Instead it is now the other way around. And pegged currancies are pegged not to gold but to another currancy, useually the dollar. Various factors like production, inflation, interest rates affect the exchange rates. But the net result is that exchange rates adjust so that the return on investment is equivelent between two countries.

If you want more detail pick up any good macro text book or go to the SOA.org's website and read the study notes for the second actuarial exam (which I am currently studying for).

But still this does not negate the use of gold as a common value for comparing income and expenditures. In reality at some point in the late industrial or modern era, the gold comparison would have been replaced by the currancy of the strongest economy. In the same manner that for at least now dollars have become the new "gold" of the world financial markets.