Monday, July 13, 2015

Pricing a good with multiple currencies

First, always hire a good mathematician.

An easy way, look at the stable growth rate of deposits minus loans, which should be listed in a banker bot secure world.  That difference is the currency exposure, and I was trying to work with the distribution of that value a few posts ago.  But check mean to variance of that exposure (go find the posts I put up).  Then the greater the mean to variance, the greater the currency risk for that currency.

Or, just use to the loan/deposit ratio under the same stable conditions. Find out how much second derivative that ratio has. The more second derivative, the safer the currency.

When you are happy, then negotiating a blended currency price for any good is simple and can be done right at the check out counter. These are all banker bot functions based on self adapted statistics, the theory of everything. It is all about making sure the price encoder and decoder mostly match.

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