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Issuers would achieve this stability through loan extension and expiration operations (the major, long-term method) or currency trading (the minor, day-to-day method).
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In addition, with modern technologies and the emphasis on information as a method of currency, people can work in information and knowledge jobs much longer than they could in factory or other manual labor jobs, and can do so from their homes.
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There is no surefire method for calculating a currency's fundamental value.
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The third method is to simply replace the old currency with a new one, which has no direct relationship to the old.
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Of the three approaches, methods 1 and 3, using currency shares and empirics respectively to adjust for currency valuation effects, result in robust relationships between changes in currency-adjusted FX reserves and the BOP surplus, whereas method 2 using forex purchases as an alternative proxy for adjusted FX reserves is inferior.
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The second method is to take a figure close to where the floating currency is presently trading.
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Another method: Play off the hapless euro against another, healthier European currency.
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This can make it easier to come up with the next Method or Pinterest or Spanx or even Facebook, which trades in the currency of shared feelings, thoughts and pictures.
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