Alternative monetary systems

Alternative monetary systems an attempt to control the exponential growth of money supply, some countries have given full independence to their central bank. The central banks of New Zealand, Australia and the UK have the ability to set interest rates and implement monetary policies independently, if any interference or guidance from central government. This can cause the control to serve the interest rates to fight inflation or devalue the currency. However, given that these policies do not eliminate the problems inherent in fractional reserve system, many suggest that only a much more radical monetary reform can promote positive social change. Although it appears that central banks control inflation, because loans made to other banks, may be forced to devalue its currency to save the banking system, bankruptcy or collapse in the event that many people wish to withdraw their savings same time.This situation creates panic in the financial system, making it susceptible to economic bubbles. Theorists such as Robert Mundell (and other radical thinkers such as James Robertson) are the currency reform an important part within a system of global institutions, which together with the United Nations, should ensure sustainable development and world peace. In particular Robert Mundell believes in the resurrection of the gold standard as a stabilizing factor in global financial system.Henry Liu, Asia Times Online, believes that monetary reform is an important part of an evolution towards post-autistic. While some economists suggest monetary reforms to reduce inflation and increase the efficiency of financial capital, the idea of synchronize with other objectives such reform green peace is tied to leftist groups and the antiglobalization movement. Other proposals for reform (with utopian goals) put the emphasis on changing the monetary system, tax and budget, so that the government has ability to steer the economy towards a system that would not be possible if government spending is financed solely with debt from the private banking system.In particular, some reformers like Stephen Zarlenga, Michael Rowbotham and Ellen Hodgson Brown supported the restriction or elimination of fractional reserve banking system (characterized as a practice unlawful misappropriation) and replacing it with a government with a debt-free currency issued directly by the Treasury and not by the quasi-governmental Federal Reserve. This measure is seen as a way to liberate the workers of “debt slavery” and facilitate a transformation of the economy, away from wild consumerism and towards a sustainable economy, supported by favorable business practices from the environmental point of view.

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