Mudcat Café message #3994444 The Mudcat Café TM
Thread #165570   Message #3994444
Posted By: DMcG
30-May-19 - 02:29 AM
Thread Name: BS: Brexit #3: A futile gesture?
Subject: RE: BS: Brexit #3: A futile gesture?
The idea of a parallel currency that Italy is raising is remarkably similar in some ways to Brexit. Yes, you can run a campaign to convince people it is a good idea, and they can vote for it and perhaps win it. Or, as a government you can introduce it with the persuasion but without having a vote (at a somewhat greater risk to your personal future if it all goes bad.) But if you do introduce it, you get the whole package. You don't get to choose the bits you like and reject the bits you don't.

I visited Madagascar a few years ago and it uses a curreny called the 'ariary'. At the moment, 1 arity = 0.00022 pounds sterling. When I left, I came home with around 25 worth of currency. It is a wad of notes about 3cm thick. It is a perfectly useful currency for internal trading - paying for a hotel room, for example - but try to buy any foreign goods - a can of coke, rather than the local version for example - and it has very little value at all. Try and buy arity before you go to the country and it is unheard of - the banks don't even recognise it. (While India won't allow the banks to buy and sell their currency, at least the banks know it exists.)

So Italy can introduce a parallel currency if it likes, and hope to get some advantages out of it. But, whether they like it or not they would also get any disadvantages that come with it. And primarily they would probably turn out to be huge difficulties of trading with other countries, in or out of the EU, because it is those countries that decide on the value to attach to the parallel currency. And it could turn out to be virtually none.