20120216 Follow Me 280 Money, like hat-wearing, depends on convention, not laws

the article is  a little profound, and sounds not so easy, i check many new words, or called economical terms here.
I am subtly confused with the title, what does hat-wearing mean here? is there any collection? Just head decides the hat? the whole passage is taking about notes, and Scottish Pound, and then talks about the currency, about the currency's value and its circulation.  chartalism is an interesting word.

if you still not fully understand, pls read the Chinese editionhttp://www.ftchinese.com/story/001043181/

i LeCroy a lot from this passage .thank you for sharing ~~^_^~~

this article makes me think of the book of "Economics of Money and Finance" written by Huangda ,the close ties of credit and monetary makes our economy and society more and more increasingly dependent on credit which can be a kind of convention . current money system based on bank credit and protected by state law are widely uesed in every corner of world , however , this system can  be effectively applied is due to the widespread presence of the credit rather than from the legal mandatory role

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Money is a measure to value and to circulate. When a country becomes strong enough and attracts many foreigners to do business or to travel, the access to local market is expected to be easily got, then there will be strong requirements to get that country's currency.
In old days when money were minted by valuable metals, such as gold or silver, they were regarded precious because the minted money couldn't be created without limitation. But when it came to paper-printed currency, how could one print as much as what he wants? Then, if some currency circulates, it should replace some other currencies. It may depend on how you buy or sell that currency priced in another one. The buying or selling deal will bring about costs. Why should the country bear that cost? It may depend on the policy, which is reflected in the laws.

谢谢。。。。

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flyinn 发表于 2012-2-16 19:03
the article is  a little profound, and sounds not so easy, i check many new words, or called economi ...

That maybe a metphor!! In my oppinion, hat-wearing is decided by what the public pursue. That is to say,  how to choose clothes is up to whether fashionable or not. Similarly, which kinds of money used in a nation is decided by that the public identity.

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