(Ex)Change:
Economies of Scale
In the context of EuroVision2000/Café9/IMF events in Prague in early September, I propose a temporary, informal “foreign exchange” booth on the Charles Bridge, which accepts only the exchange of foreign coins of very small “sub-denominations”, i.e. those precise quantities existing below the standard of the national currencies: for example, the cent rather than the dollar, the pfennig rather than the deutschmark, the halir rather than the Czech crown etc…
The characteristics of this foreign exchange “office” are:
It deals only in small, street-level, human-scale transactions: small change, loose change, and spare change…. What in fact the “real” exchange offices refuse to exchange, because the weight-to-value ratio makes it unprofitable for them.
It‘s exchange rate is always 1:1, that is, one coin exchanged for one coin, regardless of the face value, relegating the money to an “object”, a souvenir, a collectible (a last sentiment in the face of inevitable replacement of European national currencies by the regional Euro). Since the value is so minimized as to become symbolic, the real relative market values of the currencies will not be calculated, except for purposes of curiosity. For example, such phenomenon as the fact the the smallest coin in circulation in France (5 centimes) is four times less valuable than the smallest in circulation in Switzerland (also 5 centimes or ”rapin”), etc…
Focuses attention on an “inverted economy”, in which the minimal, concrete exchange takes precedence over the attention placed in the media on buy-outs, take-overs, mergers, embezzlement, and other such abstract shifting of invisible or electronic money, and ridiculously large, incomprehensible sums.
Creates a market of “bartering” for money, whereby the face value of the coin is supplanted by an exotic or aesthetic value for the “consumer”, a revival of virtually worthless coins by assigning them sentimental value.
Negates the idea of a relative, floating economic power relationship between national economies, as defined by an inter-relationship of their currencies, by imposing a fixed, fair rate of exchange.
Usurps the mythical powerful-sounding currencies like “Swiss Franc” by use only of the name of the modest sub-denomination “Swiss centime”.
The public (mostly tourists in this context) will be invited to exchange some of their smallest national coins they might have with them for Czech, or if they wish, other national coins. There are no questions of “convertibility”: all currencies will be accepted, and given a listing on the posted rate board (1:1).
Douglas Parsons
douglasdoregon@hotmail.com
