Chapter 106 The Medieval Monetary System

After listening to the innkeeper's words, Li Cha nodded, thought for a while and then asked: "In the Emerald Kingdom, is the exchange ratio of gold coins and silver coins fixed? What is the ratio?"

"Yes, the exchange rate is fixed. One standard gold coin can be exchanged for 20 silver coins. The official government will not let anyone change it casually. Otherwise, if you are caught, you will be imprisoned." The innkeeper said, showing a very scared look look.

But then he quickly glanced around and found that there were no people in the way, then he approached Li Cha and said quickly: "Of course, on the black market, the price of gold coins can actually be higher, and it can be exchanged for 30 coins. More than silver coins, sometimes even close to forty. Because of this, many people don’t like to pay with gold coins, and I don’t want to accept your gold coins from guests, because I’m afraid you will suffer.”

As he spoke, the innkeeper's eyes lit up, and he refused to let go of the opportunity to introduce the business: "If you have a lot of gold coins, I can recommend you a place where you can exchange them for silver coins to ensure safety and guarantee. Reasonable price."

"Uh." Li Cha nodded, without answering the innkeeper's words, but he already knew the currency system implemented by the Emerald Kingdom.

According to what the innkeeper said, what the Emerald Kingdom is implementing is obviously a double standard of gold and silver.

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

This was the most common in the Middle Ages.

Generally speaking, there are some sub-systems under this gold and silver multi-standard system.

For example, the parallel standard system: a commodity has both a gold coin price and a silver coin price, and there will be fluctuations between the gold coin price and the silver coin price, which will cause the price of the commodity to change rapidly, 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 through legislation or other compulsory methods, and ordinary people are prohibited from changing it, which is conducive to the stability of 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 the development, there will be a phenomenon of "bad money drives out good money".

This is due to the fact that the ratio between gold coins and silver coins is mandated by the authorities and is stable and will not change for a long time. In the market, the price of gold and silver will fluctuate frequently, and the discovery of a new gold mine or silver mine will lead to the appreciation 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") for use . According to the regulations of the Emerald Kingdom, one gold coin can be exchanged for 20 silver coins, but if the yellow gold is sold into gold, it can be sold for at least more than 40 silver coins. Therefore, in the introduction of the innkeeper, 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, as a philosopher named Marx said on the modern earth, capitalists will take risks when they have 50% of their profits, and dare to trample all the laws of the world when they have 100% of their profits. risking the risk of the gallows.

For profit, people on the black market are not afraid of going to prison. They charge a lot of gold coins to melt and sell to make huge profits.

This kind of thing, if Li Cha thinks, can also be done, or even better.

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

After all, looking at a medieval-like world with futuristic eyes, especially economically, is as fragile as a baby. Only by developing to the gold standard,

There is a 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 you can get the property that meets your own needs, 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 you develop technology and expand knowledge.

However, the larger the organization, the more it wants to have huge benefits, the greater the investment in the early stage and the maintenance in the later stage, and the middle is full of various instability.

In the early stage of exploring the world, the establishment of a so-called organization is not worth the gain. If you really want to build it, it is best to talk about it after you have achieved certain results in exploring the world.

When Richard thought so, the inn owner turned to greet the man, "Lester, help this guest find a room and bring his luggage up by the way."

"Hey, okay." A young freckled and brown-haired boy of twelve or thirteen years old, dressed in gray linen clothes, trotted over. Nodding to the shop owner, he said he understood, and he went to pick up the suitcase at Pandora's feet with great diligence.

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

Um? !

The freckled boy was startled. He glanced at the innkeeper in fear of being scolded. After realizing that he had not been noticed, he immediately used all his strength to try to mention it again.

"what--"

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

At this moment, the freckled teenager was aggrieved and was about to cry: This...why is this suitcase so heavy?

What he didn't know was that after getting the iron ring, Richard did not choose to put everything in the iron ring, and even took out some of the things in the iron ring and put it in the suitcase.

Because Richard did not plan to use the iron ring as a pure space prop, and was ready to use it to realize the other three functions developed - "absolute defense of space transfer", "absolute cutting of space scissors", "spatial precision" absolute processing".

In addition, just carrying an empty suitcase, or not carrying a suitcase, but being able to continuously take out a lot of things, it is easy to make people doubt that the space props can not be exposed, or it is better not to be exposed.

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

For these reasons, the suitcase that Richard was carrying was heavy, and it will be heavy in the future.

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

When all the strength in his body was exhausted, he reluctantly put the suitcase back on the ground, feeling a little embarrassed, and didn't dare to look at the innkeeper, nor did he dare to look at Richard and Pandora.

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

The boy's eyes widened, and he hurried 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, please ask someone to deliver a letter, it is in Aijin City, the address is written It's on the envelope. Just send it over, and the silver coin is the reward."

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

Li Cha nodded, turned to follow the guy, and walked towards the second floor, ready to choose a room.