Oh god. The WW economy tortures me when I think of it. The WW economy really hasn't been thought out at all in canon. Not one bit. I'm going to ramble a bit. It may have nothing to do with what you asked. SORRY! Feel free to ignore it. :)
Transfiguration & Precious Metals/Jewels How can their money be gold, silver, and copper, if those materials can be conjured? If precious metals can be pulled out of thin air, or transfigured, then they're valueless for trade. It leads me to believe they can't. Or at least can't exist conjured/transfigured for anything but a limited amount of time. It's been suggested before, in an unrelated place, that the WW can "make" gold to exchange in the Muggle world. but the very act of being able to "magic it up" makes it valueless in the WW. Therefore galleons can either not be made of gold, or gold can't be transfigured, or galleons only have value outside the WW.
Muggle Trade The WW could access wealth by trading goods with the Muggle world that are easier to access or transfigure. The influx of goods would drive down the value of the commodities. In large amounts, this would cause serious damage to the Muggle economy with deflation.
If the Malfoys, Blacks, and Potters amassed fortunes based on Magical-Muggle trade, the results would most likely be disastrous for the Muggles. The worst could be passed along to the general population, but it would still impact the Muggle upper classes. They would be in the position of power to learn of the source of the deflation. The resulting friction could be a serious problem. The WW may cast a xenophobic eye on the non-magical world, but those in a lateral position of power would go toe to toe with the sense of entitlement.
There's this blog entry (http://scottneigh.blogspot.com/2006/09/political-economy-in-harry-potter.html) with a lot of questions about the WW economy. It's Marxist and a bit pedantic, but still has some good points about the inconsistencies.
no subject
Transfiguration & Precious Metals/Jewels
How can their money be gold, silver, and copper, if those materials can be conjured? If precious metals can be pulled out of thin air, or transfigured, then they're valueless for trade. It leads me to believe they can't. Or at least can't exist conjured/transfigured for anything but a limited amount of time. It's been suggested before, in an unrelated place, that the WW can "make" gold to exchange in the Muggle world. but the very act of being able to "magic it up" makes it valueless in the WW. Therefore galleons can either not be made of gold, or gold can't be transfigured, or galleons only have value outside the WW.
Muggle Trade
The WW could access wealth by trading goods with the Muggle world that are easier to access or transfigure. The influx of goods would drive down the value of the commodities. In large amounts, this would cause serious damage to the Muggle economy with deflation.
If the Malfoys, Blacks, and Potters amassed fortunes based on Magical-Muggle trade, the results would most likely be disastrous for the Muggles. The worst could be passed along to the general population, but it would still impact the Muggle upper classes. They would be in the position of power to learn of the source of the deflation. The resulting friction could be a serious problem. The WW may cast a xenophobic eye on the non-magical world, but those in a lateral position of power would go toe to toe with the sense of entitlement.
There's this blog entry (http://scottneigh.blogspot.com/2006/09/political-economy-in-harry-potter.html) with a lot of questions about the WW economy. It's Marxist and a bit pedantic, but still has some good points about the inconsistencies.