Re: CHAT: San Marino

On Wed, 23 Aug 2000, Thomas R. Wier wrote:

>Padraic Brown wrote:
>
>> >No, what Ecuador did, and what Argentina and actually a goodly number
>> >of other countries have already done, is to use the US dollar as their reserve
>> >currency, in exactly the same way as the US used to use gold bars.  For every
>>
>> This is not my understanding.
>
>Yeah, you're right, I'm wrong.  After I sent that last email, I checked up on
>some old articles I had read.  Apparently, they *had* been discussing going
>the way of Argentina and Hong Kong, but I had misremembered this as
>not going the whole way, when they in fact did later dollarize their
>economy, like Panama.  I do believe, though, that it was only a partial dollarization.
>There are sucres still in use;  they are just the smallest denominations.
Skimming the article I quoted from, I noted that the programme
stipulated a one year period in which the sucres will be withdrawn
and replaced with dollars. Though as you say, they must use sucres
for smaller than dollar increments; as I doubt the Mint will be too
keen on having to ship coins to For'n Parts. It's hard enough getting
them to less urbanised areas of the US.

I'm sure Europe is watching closely, as E Day is fast approaching.

>
>> >So, that was what I was asking about San Marino.  I had assumed that since
>> >San Marino is so very small, that they didn't even bother to print their own
>> >currency, with "San Marino" printed on it and all, and then peg it to the Italian
>> >lira.  It seemed much easier for me to see them using Italian liras outright.
>>
>> Right. Different situation; and I don't know the specifics. They do
>> mint their own coins, though who knows how much they circulate.
>
>Well, they haven't entirely "lirafied" yet, then.  But surely, the
>Vatican has, right?  I mean, they have about 1000 permanent
>inhabitants!
San Marino has some kind of customs arrangement with Italy, as must
the Vatican, which puts them in monetary union. Vatican also mints
its own coins; but neither seem to print paper money. Both make
their own stamps (sale of which makes for most of SM's income) as
well.

>
>> It'd be "easier" if everyone just used US dollars! ;) What about
>> national pride? Sovereignty issues?
>
>Yes, but saying that a nation the size of San Marino will overlook
>economic advantages for the sake of national pride is, I think, unlikely,
I don't know. The San Marinerians have _successfully_ put off
the attacks of superior powers for more than a 1000 years (incl.
Napoleon and Mussolini). Care to bet 10000 SM lire? :)

I suppose if pressed hard enough they might capitulate.

>considering that virtually every other facet of their economy, political
>system, and culture is intimately linked to Italy.  I mean, we're not
>talking about France or Germany here, where the population runs
>into the tens millions of inhabitants, and where they as a country are
>far more selfsufficient than San Marino is.
There are a few more than 20000 of them; many of whom are farmers.
If they, as a society, don't make much use of modern technology,
they might be quite self sufficient. One of our fellow Italians
ought to be able to tell us more about them.

>
>> The fact that they've been around some 1700 years?
>
>I read somewhere, and cannot remember the source, that this was completely
>a myth. You know, like the Donation of Constantine, to justify a landclaim
>after the fact.
Hm. I don't pretend to know how mythical their founding is. Only that
what I've read leads me to believe that they have been around a while
and don't put up with others' nonsense.

Padraic.

>
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>Tom Wier   |     "Cogito ergo sum, sed credo ergo ero."
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