Welcome to the Second Life Forums Archive
These forums are CLOSED. Please visit the new forums HERE
A suggestion for a better economy |
|
|
Sano Brewster
Registered User
Join date: 22 Feb 2006
Posts: 15
|
05-16-2006 22:39
I'm not sure if there's a rule against this but heres a thought, LL could set a fixed amount that the SLL sells for, for example they set it at 200L/1USD and that would be the only price, or have some flexibility to it and let people travel 100L up or 100L down to try and beat cometition but it will never get too crazy like the 500s it's been touching... what do ya say LL?
|
|
Enoch Figtree
Registered User
Join date: 9 May 2006
Posts: 2
|
05-16-2006 23:43
Pegging the exchange rate would be a terrible move for LL. In RL economies pegged exchange rates don't work unless there are controls and limits how money is moved in and out. If not, speculators would abuse the exchange until the bank can't honor its fixed exchange rate anymore.
|
|
Jesrad Seraph
Nonsense
Join date: 11 Dec 2004
Posts: 1,463
|
05-17-2006 00:09
Abuse the system ? How ?
_____________________
Either Man can enjoy universal freedom, or Man cannot. If it is possible then everyone can act freely if they don't stop anyone else from doing same. If it is not possible, then conflict will arise anyway so punch those that try to stop you. In conclusion the only strategy that wins in all cases is that of doing what you want against all adversity, as long as you respect that right in others.
|
|
Nexus Nash
Undercover Linden
Join date: 18 Dec 2002
Posts: 1,084
|
05-17-2006 05:30
I'm not sure if there's a rule against this but heres a thought, LL could set a fixed amount that the SLL sells for, for example they set it at 200L/1USD and that would be the only price, or have some flexibility to it and let people travel 100L up or 100L down to try and beat cometition but it will never get too crazy like the 500s it's been touching... what do ya say LL? Let me introduce you to several rulers of South American countries. The world was a 'fixed change' rate before they realized it didn't work. It was then changed to 'floating point' rates which we know today. _____________________
|
|
Bloop Cork
This space for sale.
Join date: 27 Apr 2006
Posts: 277
|
05-17-2006 06:00
Hi, Sano:
There have been a number of suggestions on the forum to set the exchange rate at a fixed point or within a limited trading range. Doing so, however, would severely limit the emergence of a truly self-regulated, fluid economic system. In the RW, price or exchange rate fixing--although seemingly a good idea--eventually leads to dire problems. Numerous examples can be given. The healthiest economic systems are free-market, self-regulated economies. They are by no means perfect and never will be perfect. But, they are the best system that allows for a fair exchange of value for services offered. They are driven by supply and demand. When supply is high and demand is low, it becomes a buyers market. It is a sellers market when the opposite is true. Currently in SL, it is a buyers market as more people want to exchange Lindens for US$ than buy them. As LL's buisness plan matures, and assuming they are successful at achieving their vision, more residents will enter the economy. This should help even out the supply and demand over time. Where the actual happy medium for the Linden to US$ exchange rate turns out to be remains to be seen. The economy will determine this. Even after supply and demand equilibrates, you can be sure that the exchange rate will continue to fluctuate--usually within a small range on average. But sometimes there will be large swings in the exchange rate as some in-world or RW situation makes the market uneasy. Please read this Linden Forum thread to learn more about LL policy on the economy: /3/8c/54736/1.html |