Time to say goodbye…

Now it is the time when the FLY project is almost over. We have done a lot of work since autumn 2014. As a partnership of 6 countries, sometimes it has not been easy to make the things work. But we have with much effort finalised and published our main product – an e-course on financial literacy. The e-course is available in 5 out of 6 languages (English, German, Czech, Romanian & Bulgarian) of the partnership as the Italian partner has left the project too early. There have been also many workshops to raise awareness. The workshops were done in Austria, Czech Republic, Romania and Bulgaria.

It is also the time to thank to the great team of the FLY project for the cooperation, for all effort we put into the FLY project and for the great welcoming of new people who came into the project during its existence. I hope that our work will stay live for a long time and will fulfil the expectations of many people involved in the project and especially will help students, teachers and other people to understand the world of finances.

And because we had our final transnational meeting in Ostrava, Czech Republic, and the autumn time is very beautiful there, I am posting my today’s morning photo while walking to the meeting 🙂Ostrava

Fiat money and value of modern money

20161019_092411Today virtually all currencies (money) are fiat money. That simply means their value is determined by the government saying what their value is and then of course the financial markets define their value according to search and supply. To illustrate this consider the following case: In January 2005 Turkey introduced monetary reform deleting six zeros from the Turkish Lira (TL) and replacing it with 1 New Turkish Lira (NTL).

Both banknotes at the left have exactly the same value. It happened for me to be in Turkey at that time and I was lucky to keep both these till today as excellent example of how the “value” of money is changed through government decisions. The international markets adjust fairly quick to such changes, as do the local prices and customers. So the zeros in a banknotes do not really represent “constant” value, rather they represent the current “assigned” by the government or markets value.