Virtual/Real Currencies (was: RE: [MUD-Dev] [NEWS] Gaming Open Market)

[David Blankley]

From: "Freeman, Jeff" <jfreeman at soe.sony.com>

> There are two questions that have to be answered before we take
> even one step down this path:

>   A) Why not just use real dollars, then? (or any > other current
>   real-world currency)

>   B) Why do this at all?

A) For the same reason we don't have a single currency worldwide ->
a currency allows you to control your economy.  When you are pegged
to someone elses currency your economy is subject to the whims and
vagaries of their monetary policy.

As in-game economic systems grow in complexity this flexibility will
take on increasing importance.

A chapter on Currency Boards/Pegs in an undergraduate textbook on
International Finance should cover this in more detail for those
that are interested.

B) One area where this would have tremendous value is empirical
economic research.  An economy with independant agents where the
owner (or the agents, doesn't really matter which) gets to play
central banker and observe behavioral changes and system wide
consequences without causing havoc in the $7tn US economy has
obvious merit.

Independent of the scientific merit, it's fun.

Now to lend some heft to what I said: My undergrad is in Economics,
I have a Masters in Finance, and I have several years of work
experience on Wall Street.
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