Farley on Nostr: If the fiat monetary system was designed to be moral and ethical from the start, the ...
If the fiat monetary system was designed to be moral and ethical from the start, the central bank would have established a fixed supply of money, ensuring that this supply was not exceeded. Here’s how such a system might work:
Fixed Money Supply: The central bank would create a fixed amount of monetary units initially, defining a clear cap on the total supply. This supply would be adequate to support the economy based on its needs.
Transparent Lending: When the central bank loans money, it does so from this fixed supply, and repayments (including interest) would be made back into the system, maintaining the total supply level.
Controlled Creation of Money: New money would only be introduced in response to legitimate economic needs or growth, based on clear, predefined criteria. This process would be transparent and subject to strict oversight to prevent excessive or unplanned money creation.
No Overdraft or Unbacked Creation: The system would avoid creating new money out of thin air or without corresponding real value. All new monetary units would be tied to real economic value or needs.
Ethical Constraints: The central bank’s operations would be guided by principles of fairness, transparency, and accountability, ensuring that money creation and lending are carried out with the public’s best interests in mind.
By adhering to these principles, the central bank would help ensure that the monetary system remains stable and fair, avoiding the ethical pitfalls associated with unlimited money creation and debt.
Fixed Money Supply: The central bank would create a fixed amount of monetary units initially, defining a clear cap on the total supply. This supply would be adequate to support the economy based on its needs.
Transparent Lending: When the central bank loans money, it does so from this fixed supply, and repayments (including interest) would be made back into the system, maintaining the total supply level.
Controlled Creation of Money: New money would only be introduced in response to legitimate economic needs or growth, based on clear, predefined criteria. This process would be transparent and subject to strict oversight to prevent excessive or unplanned money creation.
No Overdraft or Unbacked Creation: The system would avoid creating new money out of thin air or without corresponding real value. All new monetary units would be tied to real economic value or needs.
Ethical Constraints: The central bank’s operations would be guided by principles of fairness, transparency, and accountability, ensuring that money creation and lending are carried out with the public’s best interests in mind.
By adhering to these principles, the central bank would help ensure that the monetary system remains stable and fair, avoiding the ethical pitfalls associated with unlimited money creation and debt.