Suppose hypothetically, 10,000 people were marooned on a fertile bountiful secluded island and in time they had all occupied their own plot of land and become: farmers, planters, fishermen, miners, foresters, builders, printers and other service personal and manufacturers. They then agreed to form a government and create a reserve bank. Bearing in mind that there would be privately owned supplies of gold, silver and paper on the island, how would the newly elected Reserve Bank Chairman create the monetary system? Specific answers please on what he/she would actually do (!), rather than generalisations about GDP, confidence in the currency system etc., etc.
2006-06-05
19:13:16
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2 answers
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asked by
Edward Carson
3
in
Economics