Re: shuttle disaster
On Sun, Feb 09, 2003 at 01:13:58AM -0500, David P James wrote:
> Pigeon wrote:
> >On Sat, Feb 08, 2003 at 01:18:14PM -0500, David P James wrote:
> >>I'll give you a difference: liquidity. There are also differing degrees
> >>of transferability and risk associated with all the forms of assets that
> >>you've listed. I can't just use the tokens anywhere; they are probably
> >>only redeemable at that particular arcade, though I might be able to
> >>sell them to another arcade-goer at par or at a discount.
> >I can't just use rupees anywhere; they are probably only redeemable in
> >India and neighbouring countries, though I might be able to sell them
> >to someone going to India at the current exchange rate or at a discount.
> I don't quite follow what you're trying to say here. In general a
> foreign currency is subject to much the same liquidity problems as other
> types of assets. That is, a foreign currency is not the same thing as cash.
I was simply pointing out that the difference is one of degree rather
than of kind. Arcade tokens can only be exchanged in the arcade;
rupees can be exchanged in India and presumably some neighbouring
countries; US dollars can be exchanged - officially or unofficially -
in many countries beside the US. A foreign currency is the same thing
as cash when you're in the country concerned - of course - and arcade
tokens are cash when you're in the arcade.
Note that I am not an economics student, so I am probably using terms
in the context of the pigeon-in-the-street's definition rather than
the rigorous economist's definition.