I took some time to devise another economic graph earlier today, this one for the Fixed Exchange Rate that the Work-Standard is expected to be using. This “Fixed Exchange Rate” in question, although it is backed by the Intents of Command and Obedience, is still dependent on the Value of Arbeit (Read: Quality of Arbeit, QW) and the Price of Geld (Read: Quality of Geld, QM). Having a lower QW value is tantamount to having a higher QM value. This is because the Sociable Currency, any currency pegged to the Work-Standard, is backed by the Value of Arbeit, which in turn governs the Price of Geld.
The above graph is meant to be read with the placeholder currency, the GDM, in mind when compared against the US Dollar. The Units of Currency and Exchange Rate govern how the GDM’s performance against the US Dollar.
The red line, denoting “Command (C),” indicates how many GDMs are wanted or needed in exchange for US Dollars. The green line, “Obedience (O),” is how many GDMs are there in existence at any given moment. Thus, they correspond to the Value of Arbeit and the Price of Geld for the GDM.
On the y-axis, the Exchange Rate determines the GDM’s Value based on its ability to purchase US Dollars. The dotted line indicates the Synchronicity between Arbeit and Geld under the Intents of Command and Obedience. Its positioning is affected by the Quality of Arbeit and Quality of Geld. When the GDM becomes Overvalued, Currency Appreciation sets in and causes the GDM to buy more US Dollars due to its superior financial firepower. Conversely, if the GDM becomes Undervalued, Currency Depreciation occurs due to the GDM buying fewer US Dollars.
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