Kirib: Difference between revisions
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In the reign of King [[Thadeus I]], the [[Great War]] began which was incredibly expensive and it required the Treasury of Morstaybishlia to borrow incredible amounts of gold and silver from the Bank of Staynes to pay for the war effort. People became increasingly worried that the kirib would become virtually worthless and started queueing at banks demanding that their kirib notes and coins be redeemed for gold and silver. The Crown immediately banned the use of gold and silver in everyday transactions. This had the effect of making the kirib a representative currency. Thus, people were forced to hold on to their kirib denominated assets, preventing a massive run on the banks that would have crippled the economy. People were free to pay their taxes in kiribs instead of precious metals and banks expected kiribs instead of precious metals and payments for loans. Furthermore, the government could channel these resources to fighting the war and supporting its allies in the Imperial Powers. This did not mark the end of the gold standard but withered the everyday applications of this standard except on a macroeconomic and national level. It catalysed further modernisation and reforms under the reign of King [[Thadeus II]].
During the reign of King [[Galfridus]], electronic lectronic systems emerged that made it easier for people to communicate and usurped the telegram. They had the effect of making banking vastly easier and reducing the dependence on physical currency for large transactions. In 1969, the [[Noroist Axdel|Noroist Republic of Axdel]] seceded from Great Morstaybishlia but continued to unofficially use the Kirib. The [[Auroran Imperial War]] was incredibly costly for the Bank of Staynes. Now, it was not individuals and business that would demand gold and silver, but entire governments. The Bank of Staynes dreaded the probability that the Kirib Monetary Union would effectively collapse. Moreover, the member states of the Kirib Monetary Union were on opposing sides of the war. Thus, the Bank of Staynes declared monetary neutrality, protecting the hard currency balances of participating states even if they were not allies of Great Morstaybishlia. This drew a lot of public criticism against the bank both from within Great Morstaybishlia who felt that the Bank of Staynes betrayed them and by foreigners who felt that the Bank of Staynes could be manipulated by the Morstaybishlian government to their detriment. When the war ended, all of Morstaybishlia's enemies were defeated. But it wanted to prevent the collapse that would lead to instability in the KMU. Thus, it was decided that the value of kiribs would no longer be fixed to gold at all - effectively ending the gold standard. Instead, the demand and supply forces on commercial markets would dictate how much it was worth. Moreover, gold and silver as means for transactions were totally banned, relegating them to assets as any other. [[Axdel]], [[Emberwood Coast]], [[Lyrevale]] and [[Quarts Fern Forest|Quarts Fern Coast]] formally joined the KMU
=== United Auroran era ===
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