Santairiku Eiyuuki

The current monetary system of the Lemurian Empire was established by the Great Emperor, who suppressed hundreds of years of civil unrest.

When the great emperor who built this Nova Lemuria issued the Lemurian gold coin, the gold content of the Lemurian gold coin was ninety-five and eight per cent.

This was not an exaggeration at the time to say that it was the highest purity in the world.

Despite the decline, the highest purity Lemurian gold coins issued by the Lemurian Empire, which still maintained its national power at the time, were instantly used all over the world…

It became the base currency.

But as times go down...

There was a problem.

It is a lack of currency.

Because even though the economy of the Lemurian Empire has developed and demand for currency has increased, the supply of currency has not kept up with it.

Naturally, gold coins are made of gold.

The gold is mined from a gold mine...

The gold mine doesn't care enough to increase the amount of mining as the economy develops.

Rather, the amount of mining is reduced.

The gold mines of the Lemurian Empire can still be mined...

Its mining volume is constant each year, and it is visible that one day it will deplete.

In addition, metal currencies wear out slightly each time they are used.

Some of them are smart enough to shred their edges and try to make money.

Money is so diminishing.

Plus...

The gold coins of the Lemurian Empire are too valuable.

Because of its credibility, it tends to spill abroad.

In addition, the Lemurian Empire was originally a country in excess of imports, paying for many luxuries from the East with gold.

And, well, due to various circumstances, there is a chronic shortage of gold coins in the Lemurian Empire.

So what happens when there is a shortage of currency, currency, and gold...

Needless to say.

There will be deflation, falling prices and recession in the economy.

If there is deflation, the economy will continue the vicious circle and the size of the economy will shrink slightly.

No matter how much Erkühr tries to boost the economy by protecting industry, it will be hung with cold water.

There is one way to solve this.

It is about increasing the circulation of currency, which means increasing the number of gold coins issued.

But you can't change the amount of gold mined.

Then… we have to change the number of pieces of money that can be made from the same amount of gold, i.e. reduce the gold content contained in gold coins.

"I don't really want to do this, really."

"Well... I'm guessing how you feel"

Shylock laughed bitterly at Erkühl's words.

The Emperor is the only one in the Lemurian Empire to have the right to issue gold coins.

The gold coin stamped with the side and name of Elquille is the authority of Elquille itself.

Dropping the character of that gold coin leads to a decline in the authority of Emperor Erkür, Lemuria.

It has been the will of the emperors of history as monarchs of the superpowers who have continued to preserve their character, let us say pride.

In the case of the Lemurian Empire, where the very value of commerce is inferior in the first place, reducing the gold content of money cannot be helped by being treated fraudulently, and if the emperor himself directs such fraudulent things, he will not be spared the blame.

Besides, decreasing the quality of the currency and increasing its circulation are likely to result in a significant decline in the value of the currency, rapid inflation.

Rapid inflation is the lower level of the Lemurian Empire. The people strike directly at the wallet of the Lemurian nobility who is getting fixed wages, bureaucrats, soldiers… and salaries.

"The economy is complicated and strange. I don't really want to get my hands on it."

Only a number of economists exist in theory.

Although the structure is simple compared to modern Japan, it does not change the complexity.

I don't know how to fall.

"But you can't do it. That's why... the question is how much lower? I'm going to see how it goes and make it about 80% first, what do you think?

"Then you mean that the rate of increase in currency is one or two times greater. Aren't you a little weak? As far as I'm concerned, I think we could lower it to 70% … I think it would be less effective if we didn't lower it one, thirty-five times, and even less"

"Uhm......"

After listening to Shylock's suggestion, Erkühl worried a little...

"Let's take a moment. Seventy-five percent, one and twenty-seven times. Honestly, I don't want to be too adventurous... and gold coins with less than 70% content are too degrading. Involve national authority"

If it's not enough, you can cut it down temporarily.

That's what Erkühr said and persuaded Shylock.

That's right, Elkühr, he's up for currency recast too.

"The problem is that merchants and churches don't know if they'll cooperate with the cast..."

"Exactly, that's the problem. Bad money drives away good money."

Unlike the Japanese yen, the Lemurian gold coin, the currency of the Lemurian Empire, is the real currency…

The material itself guarantees the value of the currency.

I'll reduce the amount of gold, so lend it a little, and few people will respond, "Yes, really?" where I said, etc.

Plus there's a good chance that old currencies of high value will be retired.

"Actually, I have a secret plan, do you want to hear it?

"... may I ask you something?

"I'll give it back to you later. Just for a little while, why don't you ask me to lend it to you for just a few months and wind it up and re-cast it all at once?

"... isn't the second frying a good place?

"Yes, sir."

A long time ago, the masters of this urban state have repaid their debts in this way.

Columbus eggs work because they're the first time, and the second time they don't get through.

"Do we have to do an incremental exchange for all this? Six percent, no, about seven percent. The more you pile up, the more you respond? Threaten the church by force after asking the princess witch (Medium) to cooperate. Merchants have no choice but to flirt and threaten the abolition of union privileges. Later, Lemuria Trading Company will be entrusted with foreign trade to prevent the exodus of old gold coins and will closely monitor the export of gold coins... well, I think it's water on the burning stone."

It would be better than not doing it.

Elquille flaunted her shoulders.

"By the way, Your Majesty, do you mind if I don't change the silver coins?

"Oh, there's no problem over there. I'd rather not change it."

Erkühl answered Shylock's question instantly.

The exchange ratio between gold and silver coins will naturally remain unchanged if the denomination is not changed, even though the gold content of gold coins has been reduced.

Then the value of the silver coin increases as the value of the gold coin decreases.

We will be in a state of high gold and silver.

"Have you forgotten? Farth has a silver economy."

"Oh, I see..."

In response to Elquille's answer, Shylock showed a convincing color.

The Lemurian Empire is a country of the gold economy and the Kingdom of Fars is a country of the silver economy.

What Elquille wants to say...

That is easy to understand if we replace the Lemurian Empire and the Kingdom of Fars with Japan and the United States, gold and silver with circles and dollars.

In other words, a high yen dollar policy.

The aim is to promote exports from the Lemurian Empire to the Kingdom of Fars and, conversely, to curb imports.

The Lemurian Empire imports large quantities of luxury goods, such as silk and gems, through the Kingdom of Phallus, but Erkühl wants to shrink this and, conversely, expand its exports of coffee and sugar from the Lemurian Empire to the Kingdom of Phallus.

"Well, it was originally an import overrun, and it won't do enough to reverse it. That's right, Sasan VIII won't notice it easily, and it's difficult to counteract. Anyway, that's why... you should be ready to root for the merchants. I'll keep my roots in the church and nobility."

That's what Erkühr said and let Shylock leave.

Then take the letter from Cecilia out of the drawer......

I started writing replies.

Now that he had finished writing his reply to Cecilia, Elquille summoned three people: Galphis, Christos and Lucanos.

I'm pretty sure they're all pillars that support Elquille's regime...

Different job titles.

It's been a long time since the three of them were called at the same time.

What can I do for you?

and welcomed the three of them with a questionable look on their faces and said, looking around.

"This time I am not a soldier, a priest... but a nobleman of the Holy Seventy Seven. To put it straight in, I want to do something about the luggage pureblood Long Ear Clan (Hi Elves)."

"Oh......"

"I see."

"Finally,"

The three floated a convincing color.

Luggage Pure Blood Long Ear Clan (High Elves) … is a total salary dependency, parasitic to imperial finances, and some St. Seventy Seven families that are packed.

What is the Holy Seventy Seven...

It consists of seventy-seven main houses and around three hundred divisions, including the Yulianos family, a lineage of righteous pureblooded long ear clans (high elves) that have been pulsating since the founding of the country.

It is precisely the history of the Lemurian Empire itself and the pillar of the nation.

Nevertheless, it is in fact from pin to kiri.

With the exception of the Julianos family, which is distinct, the Saint 77 family can be divided into four categories.

A powerful house with sound finances, little debt and still many land and political rights.

Specific examples are the Lucarios family and five others.

Next, houses that are sound in finances, but somewhat in debt… are common sense in scope and classified as average as aristocrats.

Specific examples are the Galeanos, the Audias and twenty-five others.

The next thing I know, my finances are getting worse, my debts are piling up... a house that manages to eat up in the bicycle industry and keeps me decent as a nobleman.

Specific examples are twenty-six families, such as the Valerius family, which gave birth to Helena, Shehrazard's mother.

Finally, the finances are completely bankrupt, and the merchants, for their part, have thrown a spoon at the recovery of their debts, and the level of starvation will quickly die if the salaries stop, the aristocracy that is reopening in a sense, the Twenty.

Out of a total of seventy six pureblood long-eared (high elf) aristocrats, forty-six are in financial danger, twenty of which are already broken.

"The empire's financial resources can never be abundant. Besides, given that prices rise with economic development, we can't let them rely on salaries forever. Come on, I need you to be independent to some extent."

It is the Julianos family that has ever spoiled them.

I'm sorry about the Julianos family in that regard... but that's why I can't let them hang around forever.

"That's why I want three relatively successful families, Lucarios, Galeanos and Audias, to come up with concrete proposals to improve the financial health of forty-six families."

That's what Erkühr told the three of them.