But if you are fixing the price to another currency, why not hold the other currency directly? I mean, if I know 5 beers are going to always be 50 euros, why not just have 50 euros and avoid the counterparty risk?
His argument would probably be that beer is less likely to inflate. If the government prints lots of money, beer prices will increase, but one can of beer will still have the same value.
If brewing technology improved, the price of a can could drop though.
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I just dont get this project and Im trying to see if Im being thick or what.
It doesn't seem like a massively serious proposal
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