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Monetary Policy

gold currency economics politics

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#1 Jac Schaeffer

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Posted 30 March 2014 - 04:30 AM

I have a question. Can governments directly interact with the monetary market, or other markets? That is, could the U.S. effectively stabilize the price of gold by automatically purchasing at a certain price and selling at another? The same goes for commodities. 



#2 Gucio

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Posted 30 March 2014 - 08:54 AM

Hi,

Yes, there are no restrictions for the usage of the Monetary Market.



#3 Zordacz

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Posted 30 March 2014 - 11:23 AM

Governments have also the ability to issue money in exchange for gold at a fixed rate of 200cc per 1 gold. Anyway, it would be very hard for a single country to alter gold price substantially in the long term.



#4 Jac Schaeffer

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Posted 30 March 2014 - 02:57 PM

That's great to know, thanks! I agree that a country couldn't alter the price dramatically for long, but a single country could stabilize the monetary market by buying any gold at a certain predetermined price, and selling it at another. This would limit gold prices to X±3, rather than the X±7 that it is now, and would expedite the movement of gold and money in the market.



#5 Zordacz

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Posted 30 March 2014 - 05:41 PM

The price of gold has been pretty stable in the past year, usually about 210cc with lows and highs of 180-270cc. When I joined the game, Q7 factories had just been introduced and gold cost something like 2000cc, definitely over 1000cc.







Also tagged with one or more of these keywords: gold, currency, economics, politics

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