Bruno always thought...

Only having its own currency is the prerequisite for becoming a truly economic power.

The many shortcomings of the physical currency currently prevailing in the mainland also gave Bruno the idea of ​​​​reforming the currency system of the Principality of Idar.

In the past, Bruno would have never dared to touch the monetary system.

But,

Today's Norman Empire can be said to be torn apart.

Pitzman claimed to be an imperial orthodoxy and established the Second Norman Empire with the support of the church.

Rez raised his arms in St. Lawrence and announced the birth of the Third Norman Empire.

At the same time, the calls for independence of the western aristocratic group are getting louder and louder, and the Odin Empire in the north has once again begun to eye this chaotic neighboring country.

so……

External factors that might have affected the reform of the monetary system have gradually faded away,

The magical industrialization process of the Principality of Idar and the government credibility established by Bruno during this period also gave the Principality of Idar the internal conditions to carry out currency system reform.

But... currency reform is easy to say, but if it really needs to be changed, how should it be changed? And what should it be changed to?

This is what makes Bruno most anxious!

Although in today's Principality of Idar, the prestige of the Stuart family is at its peak, and the credibility of the Government Affairs Office is also widely praised, it is definitely not an easy task to exchange the heavy copper plates in the hands of civilians for a light banknote.

things.

Can banknotes really be used like copper plates?

Bruno is 100% sure that such an idea will definitely become a doubt in the hearts of all Idar people!

It is precisely because of this that

Only during this period will Bruno continue to accumulate the people's trust in the Idar Government Office and deepen their dependence on this land!

Only when the people of the Principality of Idar have enough trust in the Idar Government Office and the Stuart family can the reform of the currency system be gradually advanced.

and……

Bruno plans to get it right in one step and directly issue credit currency!

certainly,

Set a goal first,

You can take your steps slowly, little by little, but you definitely can’t rush things related to the economy!

The gold standard certainly has its benefits, but once the growth rate of gold production is lower than the growth rate of commodity production, the circulation basis of this type of currency will be greatly weakened.

Likewise,

Even if the gold standard is not adopted and the silver standard or the copper standard is adopted, the same situation will occur.

And obviously,

The rapid development speed of the Principality of Idar is obviously not suitable for adopting the gold standard monetary system.

Moreover...the stock of precious metals such as gold is also an important factor that restricts the Principality of Idar from adopting a gold standard or a quasi-"gold standard" system.

indeed,

The gold standard system has its own advantages. It can eliminate the uncertainty of exchange rates between different currencies and prevent a certain country from having a privileged position in trade and exchanges.

But what Bruno wants is a privileged position!

As the ruler of the Principality of Idar, Bruno wants the Principality of Idar to have a privileged status that other countries do not have!

so……

Although the progress of credit currency seems to be a bit big, as long as it is implemented slowly and step by step, it will not cause too many problems.

otherwise,

How can Bruno use Idar Public University to train a large number of forward-thinking economic talents?!

Why is there any need to set up the Idar National Bureau of Statistics to collect various data of the Principality of Idar?!

In his plan,

The denominations of the first edition banknotes of the Principality of Idar will be based on the previous generation, which are one dime, one dollar, five yuan, twenty yuan, fifty yuan, and one hundred yuan.

in,

One dollar banknotes correspond to copper coins.

Twenty-dollar notes corresponded to silver shillings.

As for the issuance of banknotes...

Regarding this point, Bruno is not in a hurry to get it right in one step.

Civil servants in the Idar Principality Government Affairs Department, Idar Immigration Management Bureau and other institutions will be the first to use banknotes to pay their salaries on a monthly basis.

For large-scale infrastructure projects located in the Principality of Idar, banknotes will also be issued to pay workers' wages.

certainly,

Considering that banknotes have just been born after all, it will take a certain amount of time from issuance to acceptance, so... the people of the Principality of Idar can exchange the banknotes into heavy coins such as copper plates, silver shillings, etc. at the Idar United Savings Bank.

currency.

These metal currencies can still circulate freely.

after all……

People’s confidence in banknotes needs to be cultivated bit by bit!

As long as the Idar Central Bank can strictly control the number of banknotes issued and keep the value of banknotes stable, then over time, banknotes will eventually become the currency favored by the vast majority of Idar people!

Presumably those students who have carefully studied economic-related knowledge such as the rediscount rate and deposit reserve ratio will not make too many mistakes!

Bruno is still very confident about this.

And the same goes for those students.

…

As one of the first batch of students at the School of Economics at Idar Public University, Kavala feels that his life has undergone earth-shaking changes in the past six months.

In fact, when they first entered school, compared to several other colleges, the School of Economics was never a popular one.

after all……

Not to mention students from civilian backgrounds like them, even the descendants of big businessmen have no idea what economics is!

What is economy?

Anyway, according to the School of Economics, what they study is a subject that studies people’s production, circulation, distribution and consumption of all material and spiritual materials.

But this definition sounded too general and not down to earth, and they were confused at first.

But soon...

As textbooks were distributed one after another, Kavala felt... as if he had opened the door to a new world!

The impact of transaction methods, monetary system, and economy on the national economy and people’s livelihood...

For the first time, he realized that these things that were extremely close to his daily life could be summarized into such a profound knowledge!

The series of extremely typical economic phenomena mentioned in the book, such as inflation, deflation, and stagflation, were an eye-opener for him!

In the process of studying in Kavala, he looked at the world from a new perspective for the first time and thought about everything around him from the perspective of economics.

at first……

Since the theory of economics is inherently very advanced, what the teachers teach is also very limited. They can only rely on the textbooks written by the Duke (in their opinion) to further understand it.

However, I don’t know when the knowledge that was originally difficult to understand suddenly became easier to accept, and their understanding of economic theory is also changing with each passing day.

Not only knowledge related to economics, but even the most difficult mathematics courses in daily life seem not so difficult to figure out.

Of course they don't know that this is actually the effect of the double buff brought by Idar Public University, and they only think that this is the result of their hard work.

However, the enhancement of learning ability has not made the students of Idar Public University feel complacent. On the contrary, it has made them more thirsty for knowledge.

Except for three meals a day, they spend almost the whole day in the library or study room of Idar Public University, studying the knowledge they have learned!

Even when I meet students from the Polytechnic Institute, I can explain my understanding clearly and logically.

It was during this day-by-day study that the news of preparations to establish the Central Bank of Idar finally reached Kavala's ears.

at this moment,

He was full of ambition and became more and more aware of the responsibilities he shouldered!

Their fate changed because of Bruno Stuart, Duke of Idar, and now it's time for him to repay the principality!

so……

Even though the burdens on them are already heavy, Kavala still balances the tasks of learning knowledge and preparing the bank very well, and he also believes...
To be continued...