HP Approaches the Magic World

(This chapter is still recommended to be repeated)

The Daily Prophet reported on December 27, 1989:

"After November 9, 1989, in order to cope with the fiscal deficit caused by the collapse of the Berlin Wall, Germany began to issue its own currency. This directly aggravated domestic inflation in Germany. The huge inflationary pressure forced the Federal Reserve Bank of Germany to increase domestic interest rates.

, but under its seemingly ordinary appearance masked by the economic crisis, we still have reason to suspect that the dark wizards in the German wizarding world are still alive and have rescued their former leader Gellert Grindelwald from Nurmengard.

idea.”

Jon closed the newspaper in his hand and tapped his fingers on the table twice, earning an eye roll from the librarian, Mrs. Pince.

After saying sorry softly, Jon rolled up the newspaper in his hand and put it on his arm, turned around and walked out of the library.

It has been a week since he came to Hogwarts. During this week, Helga would only meet with him every two or three days. The two of them already had a tacit understanding, and the time of each class was very precise.

It would make Jon feel very lethargic the next day.

As for the after-school homework at Hogwarts, it is not difficult for Jon. He can get a pretty good score with a little time. And Jon has not shown any extraordinary talent in flying lessons.

Therefore, the sport of Quidditch has nothing to do with him as long as he doesn't take the initiative to get involved.

And the homework that Helga left for him was very extensive. For example, the Daily Prophet he just read was the homework that Helga left for him after he and Helga talked about their thoughts on Wednesday night.

Today is Saturday, and he will continue to enter Helga's portrait space in the evening. Before that, he will sort out these contents so that he can tell them to Helga.

Then Helga will make some inferences, including various possible inferences, and Jon is responsible for finding the most likely one.

Of course, this is not homework, it is part of Jon's study.

As Helga said, a good wizard must have keen judgment so that he can avoid danger as much as possible.

Jon recently found a small corner on the eighth floor of the castle. The window in that place is in the corner of the castle, and you can see the entire view of Hogwarts. And because the place is on the eighth floor, although students are not prohibited from going up, it is still very difficult.

Few people go to that place.

Jon comes here often and meditates most of the time. The magical environment of Hogwarts is quite good, and he enjoys meditating here.

The rest of the time Jon usually spends his time in a daze, and his state is similar to meditation.

But when Jon was in a daze, he thought about much more than usual.

Just like the article he just read, it actually made him know that the magic world is not all fools, there are also people who can see emergencies.

However, choosing to publish this inference in the Daily Prophet is a big mistake. The people of the Daily Prophet have already ruined their credibility over the years.

It is true that this newspaper is the mainstream media in the British wizarding world, but it has reached the point where, except for some factual news, no one believes these inferences.

No one believed that it was not a big problem. At least Jon had memories of this incident in his mind and did not react immediately. Who would have thought that the dark wizards who advocated violence also began to use their brains to try to use the methods of the Muggle world.

Are you using economic war to cover up your true purpose?

In the wizarding world, one of the biggest problems is the complacency of wizards. On the one hand, pure-blood wizards are hostile and contemptuous towards Muggles, and on the other hand, they think too highly of themselves. However, they did not expect that Britain today is not as powerful as it was back then.

The sun never sets on the Empire, and the situation in the wizarding world is not much better than that of the Muggle world. New wizards from various countries are springing up like mushrooms after a rain. Even though Dumbledore is still one of the most powerful wizards in the world,

But after all, it is difficult to survive alone. It is not easy to maintain the British wizarding community's right to speak in the entire magical world.

Especially after World War II, the country in North America, under the repeated arrangements of the wheelchair-bound leader, had taken away the greatest say from the empire on which the sun never sets. Correspondingly, the wizards of this country also

A rising tide lifts all boats, gaining more say in international magic conferences.

It is precisely because of this that in 1990 the British Muggle government decided to join a new monetary system created by Western European countries in order to get rid of the constraints of the United States. This monetary system, the European Exchange Rate System, actually uses a treaty to combine the currencies of various countries.

The mechanisms are locked together. To put it bluntly, each currency can only float within a certain exchange rate range. Once it exceeds this prescribed range, the central banks of each member country need to intervene in the market to stabilize the currency exchange rate.

And these were all operated based on the German currency "Mark" at that time.

This system soon became a tool. The Muggle representative of the Dark Wizards, a businessman named George, took advantage of the weaknesses of this system and launched a currency "hunt" against the British Muggle society.

In Jon's memory, Britain in his previous life was basically rendered helpless by George, and was hit by an economic collapse in 1992. At this point in time, the British Muggle society is facing a rapid economic crisis.

Recession, deflation issues.

Just when the German Muggle society was facing inflation and had to raise interest rates, the British Muggle society needed to increase inflation because of its economic decline. Therefore, at this time, it was urgent to lower interest rates to stimulate the economic recovery of its own society.

The conflict arose at this time. In order to maintain this "European exchange rate system", the UK must maintain an extremely high exchange rate and interest rate like Germany. This puts the UK in a dilemma.

According to Mundell's trilemma, (that is, under open economic conditions, the independence of domestic monetary policy, exchange rate policy, and free circulation of capital cannot be achieved at the same time. At most, two goals can be met at the same time, and the other goal needs to be given up.

To achieve the purpose of regulation), on the premise of maintaining exchange rate stability and free capital flows, the UK still wants to maintain high interest rates, which is an impossible thing in itself.

And Jon knows that the representative of the German dark wizard, George, is betting that the British Muggle government cannot maintain all three at the same time, and must give up exchange rate stability and withdraw from the European exchange rate mechanism. By then, the British currency pound will collapse.

fell.

Jon didn't know that much about economics, but one thing was obvious.

If the economy collapses, it will inevitably cause social panic. At that time, the British wizarding world, which relies on Muggle society, will become a large sieve and will be infiltrated by dark wizards and fall apart.

"That's the real disaster!"

Jon sat by the window and murmured.