The Intermicronational Bank has estimated the value of M$1, using a market basket.
The Intermicronational Bank of the new Micronational Dollar has announced the IBV (Intermicronational Bank Valuation), which estimates the Pound Sterling value of M$1. The first figure they have arrived at is 2.33, meaning that M$1 is worth approximately £2.33.
A statement by the IB however said that this was a poor estimate, including very few goods, and inaccurate estimates. As time goes by, they hope to improve the IBV quite drastically, mainly by adding further groups to their listing.
What is a market basket?
A market basket is a tool in economics used to measure the value of a currency. It finds the prices of various products, and then uses that to make a valuation.
How is the IBV calculated?
The IB gathered a list of available goods on the M$ system, and estimated Pound Sterling prices for them. For each item, it then calculated the value of M$1, and then averaged all of those calculations out.
What was in the market basket?
The market basket consisted of 11 items:
- A Daily Micronational advert
- A themicronational advert
- A RadioMicro advert
- A circleplug advert creation service
- A lottery ticket
- PR management from McCarthy’s Consulting
- Attorney hire from McCarthy’s Consulting
- A NewsWatch subscription
- A freedom | graphics logo
- Wiki page design from Saltborn Consulting
- Organisation set-up