Monetary reform

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Detail from the mural "Government" by Elihu Vedder in the Library of Congress
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Reform

Monetary reform is any movement or theory that proposes a system of supplying money and financing the economy that is different from the current system.

Monetary reformers may advocate any of the following, among other proposals:

  • A return to the gold standard (or silver standard or bimetallism).[1][2][3][4]
  • Abolition of central bank support of the banking system during periods of crisis and/or the enforcement of full reserve banking for the privately owned banking system to remove the possibility of bank runs,[5][6][7] possibly combined with sovereign money issued and controlled by the government or a central bank under the direction of the government.[8] There is an associated debate within Austrian School whether free banking or full reserve banking should be advocated but regardless Austrian School economists such as Murray Rothbard support ending central bank bail outs ("ending the Fed").
  • The issuance of interest-free credit by a government-controlled and fully owned central bank. Such interest-free but repayable loans could be used for public infrastructure and productive private investment. This proposal seeks to avoid debt-free money causing inflation.[9][10]
  • The issuance of social credit – "debt-free" or "pure" money issued directly from the Treasury – rather than the sourcing of fresh money from a central bank in the form of interest-bearing bonds. Maurice Reckitt said the community would issue its own credit, enabling goods to be sold below cost.[11][12]
  • The international monetary reform by proposing the development of a world central bank managed jointly by all member countries in the world. The world central bank then issues a real international currency that coexists with the national currency of each member country and can be converted to each other at an exchange rate that follows the fundamentals of each country called "auto-balancing". The international currency is only for crosborder transactions between member countries, while domestic transactions continue to use their respective national currencies.[13][14]
  1. ^ Sound Money Archived 23 April 2009 at the Wayback Machine, Lew Rockwell
  2. ^ Our Money Madness, Lew Rockwell
  3. ^ The Case for a Gold Dollar, Murray Rothbard
  4. ^ Glasner, David (25 August 1989). Free Banking and Monetary Reform. Cambridge University Press. ISBN 978-0-521-36175-0.
  5. ^ What has Government done to our money?, Murray Rothbard
  6. ^ The Case for a 100% Gold Dollar, Murray Rothbard
  7. ^ Free Banking and the Free Bankers, Jörg Guido Hülsmann, Quarterly Journal of Austrian Economics (Vol. 9, No. 1)
  8. ^ "Sovereign Money". Archived from the original on 22 June 2019. Retrieved 13 September 2018.
  9. ^ Brown, Ellen H. (2007). Web of Debt. Baton Rouge, Louisiana: Third Millennium Press. ISBN 978-0-9795608-0-4. Retrieved 15 December 2007.
  10. ^ "Stephen A. Zarlenga, The Lost Science of Money AMI (2002)". Archived from the original on 28 August 2018. Retrieved 22 September 2008.
  11. ^ Burkitt, Brian; Hutchinson, Frances (14 April 2006). The Political Economy of Social Credit and Guild Socialism. Routledge. ISBN 978-1-134-75582-0.
  12. ^ Rowbotham, Michael (1998). The Grip of Death: A Study of Modern Money, Debt Slavery and Destructive Economics. Jon Carpenter Publishing. ISBN 978-1-897766-40-8.
  13. ^ Rahman, Abdurrahman Arum (21 October 2022). Reforming the International Monetary System (Report). Economics. doi:10.33774/coe-2022-1sl9n.
  14. ^ Rahman, Abdurrahman Arum (13 December 2021). Initiating a True International Currency. Global Currency Initiative.