The inherent contradiction of "silver banknotes" lies in the fact that the value of their "coins" is far less than the face value. Silver banknotes are nominally pegged to gold, but just like commercial paper, the holder usually does not exchange it for real money for convenience, so as the issuer of silver banknotes, it is entirely possible for a government to over-issue silver banknotes and loot the people by artificially creating inflation, while the people can only comfort themselves and fantasize about a strong, responsible, and non-indiscriminate government to make up for the lack of credit of the banknotes themselves - this is the essence of "credit money".

Roland proposed to unify the currencies of the countries of the Far East, considering that the kingdom of Kolas was the largest and the number of currencies in circulation was far more than that of the five friendly states combined, so it was natural for him to propose that the currency of the kingdom of Kolas should be used as the unified standard for all countries, and that in the future, all countries would use gold taler, silver thaler (silver banknote) and copper thaler (auxiliary currency) as legal tender.

The representatives of the participating states had no problem with the gold and copper talers, but they were not at ease with the "silver money". If silver money is allowed to circulate in the country, whose hands should the power to issue it be held?

State governments print their own banknotes? This is obviously very unreliable, who can guarantee that the other party will not issue silver money indiscriminately, and then use these banknotes conjured out of thin air for international trade payment, and use their own value like waste paper banknotes to obtain real material wealth?

Such concerns are not unfounded. Roland still remembers that before he crossed over, a certain country on the earth that held the hegemony of the world's currency played like this, making the trade rivals unspeakable.

No one is stupid, if a country takes advantage of the over-issuance of banknotes, then the other member states of the economic community will inevitably refuse to suffer, and will follow the example of over-issuing banknotes, thus falling into a prisoner's dilemma. Such a vicious circle will inevitably lead to hyperinflation, and eventually the money will lose its credibility and become waste paper.

In order to avoid these consequences, Lyubov Yampo proposes two alternative strategies. The first is a conservative strategy, in which countries accept gold and copper thalers as legal tender, but do not accept the circulation of silver banknotes for the time being.

This strategy seems to be sound, but it is opposed by Lady Theodora, because the key link of "silver coins" is missing. The kingdom of Kolas has abolished the silver coin, and the silver coins held by foreigners cannot be used in the kingdom of Koras, and can only be exchanged for silver money, and when they leave the kingdom of Koras, they have to exchange the silver money back for silver coins, which is obviously troublesome and goes against the original intention of establishing a unified currency.

Lyubov Yanbo had long known that his proposed prudent strategy would be opposed, and he took advantage of the trend to propose a more radical strategy:

"The Far Eastern Economic Community will establish a unified central bank, and the right to issue currencies of all countries will be vested in the central bank."

With a unified central bank, it is possible to formulate a unified monetary policy based on the conditions of various countries, thus avoiding the prisoner's dilemma of central banks of various countries acting in their own way, competing to issue money indiscriminately, and beggar-thy-neighbor.

After a long discussion, Roland and the delegates of various countries were in favor of the formation of a central bank of the Far East in principle, and the focus of the debate shifted to how much voice each country should have in the central bank, which led to the last and most important item of the meeting: the creation of a supranational institution to manage the fiscal and monetary policies of the countries of the Far East in a unified manner.

After two weeks of haggling, by the end of July, the participants finally reached a consensus:

The Kingdom of Kolas, the North Sea Federation, Parnia, Lighthouse Mountain, Kitland, and Icewind Dale each sent a plenipotentiary representative to form the "Far Eastern Economic Community Parliament" (referred to as the "Far Eastern Court"), which held regular meetings in Krasburg. The representatives of the countries are, first and foremost, members of the "Far Eastern Royalty", and at the same time directors of the Central Bank of the Far East, and participate in the fiscal and monetary policies of the entire Far East.

The "Far Eastern Royal Court" is chaired by the representative of the Kingdom of Koras, and the principle of minority obeying the majority is adopted, and a majority vote is used to form a resolution, and if the votes are equally in favor and against, the speaker will make the final decision.

Roland personally served as the chairman of the first "Far Eastern Royal Court" and talked and laughed with the leaders of various countries.

On the surface, the "Far Eastern Royal Court" seems to be a flip board for the "European Union" on the earth, but Roland knows in his heart that there is a big difference between the two. The "European Union" has never been a real core country, the so-called "dual core" of Germany and France, in terms of population and size, compared with other member states do not have an absolute advantage, the EU only has a unified monetary policy but no unified fiscal policy, the governments of the government are incompatible, coupled with the indigestion caused by blind expansion, resulting in this loose confederation is large but not strong, only nominally to achieve "economic unity", "political unity" The ultimate goal is still far away.

Compared with the European Union, the "Far Eastern Court" created by Roland has the absolute core of the Kingdom of Kolas.

It is true that the current kingdom of Kolas is still very poor, and its national strength is not strong, but it is advisable to take a long-term view, and the development potential of a country mainly depends on its size, system and resource endowment. Compared to the surrounding states, the kingdom of Kolas was large enough not to be unmanageable like the Assan Empire, and its population was not large but twice as large as the five friends combined; The agricultural population accounts for more than 70% of the country's population, the vast land is sparsely populated, which is conducive to the construction of collective farms, and the agricultural growth potential is huge, which can ensure the food security of the five friendly countries while solving the problem of food and clothing in the country; The Far East is rich in mineral resources, and the Kingdom of Kolas has no shortage of other than magic crystals, and is rich in water resources, which is more suitable for establishing a large-scale industrial base than the five friendly countries. It has been less than three years since the establishment of the Kingdom of Kolas, but compared with the days of the Far East provinces of the empire, great progress in the economic field is inseparable from institutional guarantees, and the rapid growth of various industries in the country and the general improvement of national living standards have reversed an indisputable fact: in this era, compared with other countries in the world of Vares, the entire social system created by the Kolas government has shown unparalleled superiority.

The five friendly countries now seem to be better developed than the Far East, after all, the size is too small, there are obvious shortcomings in natural resources, agriculture is not self-sufficient, and the room for growth is limited, not only is it economically inseparable from the kingdom of Kolas, but sooner or later it will become a community politically in the future. This is not only true to Roland, but also to the insightful people of the five friendly countries, who are even more anxious to complete economic integration than Roland.

As time passes, the kingdom of Kolas will gradually turn its huge potential into strength, and its advantages over the surrounding countries will become more and more obvious. While the kingdom of Kolas has not yet fully grown, the states can still occupy a place in the "Far Eastern Royal Court" and have a certain right to speak, if it is postponed for ten or eight years, and when the kingdom of Kolas truly becomes the overlord of the Far East, I am afraid that there will be no qualifications to seek reciprocal cooperation.

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