Welcome to the Finance Wikia Sandbox! This page is for editing experiments. Feel free to try your skills at formatting here. To edit, click here or edit at the top of the page, make your changes in the dialog box, and click the Save page button when you are finished. Content added here will not stay permanently. Please do not place offensive or libelous content in the sandbox.

More info:
About the Sandbox

Hello all, how does money work? Edit

Well money doesn't do. And you have the privilege of saying how.

Remember it is not "Money" that is the root or all evil. It is "The Love of Money" that is the root of all evil.

So how are you going to use money today?

Money today seems significantly different from currencies of the past. Today we have a number of curriencies vying for leading roles in the global economy with the USD leading other curriencies in global acceptability-yet. The Euro and yen are top contenders for this position against the dollar. The dominance of these currencies ensure that most word currency units are in a perpetual decline against these leaders exposing third world citizens to constant loss of value, inflation - and corruption.

Today we have one currency that is the unit of a score of countries in europe. This is unprecendented

Again the circulation of leading currencies is in the tens of trillion of units. This is only possible due to global acceptability of these units. We are aware that currencies with much smaller circulations collapsed in the 20th century due to over printing and consequent depreciation in value. Global acceptabiity is the key here. This has sustained the leading currencies over a relatively long period of time

But global acceptability can be a two edged sword. Imagine if countries, institutions and individuals holding US Dollars start selling the currency due to the recent and continuing decline in its value against leading units. The fall in its value can be dramatic if this selling pressure increases. Many individual investors, institutions and government may opt for having other leading currencies and gold in their reserves.

Currencies that may strengthen against the USD such as the Euro and the Yen will ensure that their economies will also suffer in the medium term. They will find it difficult to sell their expensive products in the international market and this will impact their local industry and increase unemployment. On the other hand these countries will be flooded with cheap imports from all over.

So the money situation can be trickier and complex in future compared to now

Ad blocker interference detected!

Wikia is a free-to-use site that makes money from advertising. We have a modified experience for viewers using ad blockers

Wikia is not accessible if you’ve made further modifications. Remove the custom ad blocker rule(s) and the page will load as expected.