eli5: How did countries determine their initial value of money per unit of currency?

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You can be a millionaire in South Korean Won but only thousands in the US

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Anonymous 0 Comments

By fiat, as in “The King says a coin of this size is one crown of money and if you disagree this soldier will cut off your head. Any questions?”

The point is that since we’ve had markets the starting point isn’t really relevant, it’s arbitrary.

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