Friday, September 12, 2014

George Cooper — Monetary Reform – Be Careful what you aim for

In yesterday’s post – Money and the magical mathematics of Brahmagupta – I tried to explain the instability of our monetary system with some simple analogies. In this post I am going to offer a few thoughts on one proposed way to deal with this instability. The proposal in question is that of the campaign group Positive Money which is arguing for what it calls a Sovereign Monetary system.

I find myself in an odd position with respect to the arguments of Positive Money. As far I can tell their analysis of the causes of financial instability are in complete agreement with my own thinking (see yesterday’s post or The Origin of Financial Crises). On the other hand, when it comes to their proposed remedy for this instability I find myself disagreeing with both the details of their proposed solution and its objectives....
Applying Minsky's analysis to the Positive Money proposal. Cooper is also concerned that the monetary authority proposed would result in a command economy.

Monetary Reform – Be Careful what you aim for
George Cooper

No comments: