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. Pigeon -- To UNSUBSCRIBE, email to [EMAIL PROTECTED] with a subject of "unsubscribe". Trouble? Contact [EMAIL PROTECTED]
