SL’s Currency Market Explained (more fascinating than it sounds)

Here’s a great article that interviews Second Life’s economist, John Zdanowski, the CFO for Linden Labs. It originally appeared on a collection of tech-related Web sites (Linux Notes, TechNewsWorld, etc.) but it is an Associated Press item. Anyway, it explains how the Lindens kept a tight rein on the money supply after they shut down gambling and how they manage the currency’s fluctuating value. It sounds like a massive snorefest, but because it’s an AP story, it’s written to make sense to the average person.

The story focuses on economies in virtual space, leading off with the economic burp over the summer. Closing down gambling could have trashed the linden exchange rate as casino owners went to cash in their lindens, but manipulation in the front office prevented the linden from going the way of the lira. If you’re interested in how SL’s economy operates behind the scenes, this article is a good place to start. The only thing it didn’t cover was what Zdanowski’s SL name is or show his picture. Maybe that’s a good thing, at least for him.

Of course, my investments are still floating in the SL toilet and probably will be, since the $19K I had in the Ginko bank is worth about $2600 how, and my former Allenvest Financial stock is trading at about 37 cents on the linden with no prospect of going anywhere. Still, I feel funny carrying all of my money around with me. I’m such a capitalist. Anybody got any suggestions? I’m open!