Magus Tech Chapter 106: Medieval Monetary System

After hearing what the innkeeper said, Li Cha nodded, thought for a while and asked again: "In the Emerald Kingdom, is the exchange ratio between gold coins and silver coins fixed? What is the ratio?"

"Yes, the exchange ratio is fixed. One standard gold coin can be exchanged for twenty silver coins. The official does not allow people to change it randomly, otherwise they will be thrown into prison if they are caught." The innkeeper said, making a pair of Very scared.

But then he quickly glanced around and found that there was no eye-catching person, he approached Li Cha, and said quickly: "Of course, in the black market, the price of gold coins can actually be higher, and you can exchange them for More than 30 silver coins, sometimes even close to 40. Because of this, many people don’t like to pay with gold coins, and I don’t want to accept your gold coins because I’m afraid you will suffer.”

As he spoke, the innkeeper's eyes shone brightly, and he refused to let go of the opportunity to introduce business. He said again: "If you have a lot of gold coins, I can... recommend a place for you to exchange them for silver coins. Guaranteed Safe, fair price guaranteed.”

"Ah." Li Cha nodded, and did not answer the innkeeper's words, but he already knew the currency system implemented by the Emerald Kingdom.

According to the innkeeper, what the Emerald Kingdom is implementing is obviously the gold and silver bistandard system.

This kind of system is generally due to the backwardness of science and technology and the lack of gold mining, which leads to the need to supplement the currency market with silver. Therefore, gold and silver will be used as the production materials of the standard currency at the same time. Both gold coins and silver coins have unlimited legal repayment capacity, and can be minted, circulated, exchanged, exported and imported freely.

This was most common in the Middle Ages.

Generally speaking, under this gold and silver bistandard system, there are several subordinate sub-systems.

For example, the parallel standard system: a commodity has a price of gold coins and a price of silver coins at the same time, and the price of gold coins and the price of silver coins will fluctuate, which will lead to extremely rapid changes in the price of commodities, which is not conducive to social development.

Another example is the dual standard system: that is, the current implementation of the Emerald Kingdom. The exchange ratio between gold coins and silver coins is determined by the official legislation or other compulsory methods. It is forbidden for ordinary people to change it, which will help stabilize commodity prices.

The dual standard system is a more superior system than the parallel standard system, but it is still unavoidably backward. One of its major drawbacks is that with development, the phenomenon of "bad money driving out good money" will appear.

This is due to the fact that the ratio between gold and silver coins is officially enforced and is stable and will not change for a long time. In the market, the price of gold and silver fluctuates frequently, and the discovery of a new gold or silver mine will lead to the rise and depreciation of gold and silver.

In this case, when the actual value of gold increases, people will melt the more valuable gold coins ("good coins") into gold, and then sell the gold and exchange them for silver coins ("bad coins") ) to use. According to the regulations of the Emerald Kingdom, one gold coin can be exchanged for 20 silver coins, but if gold is sold as gold, it can be sold for at least 40 silver coins. That's why in the innkeeper's introduction, the black market will give a ratio of 1 gold coin to nearly 40 silver coins.

It is illegal to exchange gold for silver, but people on the black market are obviously not afraid. After all, just like what a philosopher named Marx said on the modern earth, capitalists will take risks if they have 50% profits, and they will dare to trample on all laws in the world if they have 100% profits. dare to risk the gallows for profits.

For the sake of profit, people on the black market are not afraid of going to jail. They collect a large amount of gold coins to melt and sell them to make huge profits.

This kind of thing, if Li Cha thinks, he can do it, or even do it better.

On the premise of ensuring his own safety, Richard can earn a lot of wealth, and even bring down the economy of the entire Emerald Kingdom.

After all, looking at a world similar to the Middle Ages with the eyes of the future, especially the economic aspect, is extremely fragile, like a baby. Only by developing to the gold standard can there be certain security.

But Richard didn't want to do this, and he didn't make money in this way in the Blue Lion Kingdom. This is because, in Li Cha's view, as long as he can obtain the property that meets his needs, it is enough, and there is really no need to put too much energy on it.

A lot of wealth cannot bring progress, technology and knowledge can bring progress.

It is true that earning a lot of wealth can be used to build a huge organization to help oneself develop technology and expand knowledge.

However, the larger the organization, the more it wants to have huge benefits, so the investment in the early stage and the maintenance in the later stage will be greater, and there will be various instabilities in the middle.

In the early stage of exploring the world, the establishment of so-called organizations is not worth the candle. If you really want to build it, it's best to talk about it after exploring the world and achieving certain results.

With Li Cha thinking about it, the innkeeper turned around and greeted the waiter, "Lester, help this guest choose a room, and send the luggage up by the way."

"Hey, okay." A young twelve or thirteen-year-old boy with freckles and brown hair, wearing gray linen clothes, ran over quickly. He nodded to the shop owner, expressing that he understood, and went to pick up the suitcase at Pandora's feet with incomparable diligence.

I exerted a sudden force, and then... I found that it didn't move.

Huh? !

The freckled boy was startled, and he glanced at the innkeeper in fear of being scolded. After realizing that he hadn't been noticed, he immediately tried to bring it up again with all his strength.

"Ah——"

The freckled boy's voice sounded deep in his throat, his face was flushed, and he barely lifted the suitcase off the ground.

At this moment, the freckled boy was about to cry because of grievance: This... why is this suitcase so heavy?

What he didn't know was that after getting the iron ring~IndoMTL.com~, Li Cha didn't choose to put everything into the iron ring, and even took some things out of the iron ring and put them in in the suitcase.

Because Richard did not intend to use the iron ring as a pure space prop, and was ready to use it to realize the other three developed functions-"absolute defense of space transfer", "absolute cutting of space scissors", "Absolute Machining of Spatial Precision".

In addition, just carrying an empty suitcase, or not carrying a suitcase, but can continue to take out a lot of things, it is easy to make people suspicious-it is better not to expose the space props .

Finally, the heavy suitcase is actually not a burden on the premise of Pandora.

For these reasons, Li Cha's suitcase is very heavy, and it will be very heavy in the future.

The freckled boy didn't know this, so he was deeply shocked.

After exhausting all the strength in his body, he reluctantly put the suitcase back on the ground. He felt ashamed and didn't dare to look at the innkeeper, nor did he dare to look at Li Cha and Pandora.

But Pandora glanced at the boy strangely, gently lifted the suitcase, and walked to the side.

The boy stared wide-eyed, and ran forward to lead the way.

Li Cha thought of something again, turned his head and handed out a silver coin and a letter to the innkeeper: "I have something to do, please help me to send someone to deliver a letter, it's in Aijin City , the address is written on the envelope. Just send it over, and the silver coins are the reward."

"Okay, guest, there is no problem with this." The innkeeper glanced at the address on the envelope and found that it was not a special place and there was no danger, so he immediately agreed.

Li Cha nodded, turned around and followed the buddy, and walked towards the second floor, preparing to choose a room.