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Monetary Reform
Proposals for monetary reform come in three major types:
Monetary policy is among the most important and least understood issues in public policy. see: what is money?? for a tutorial?.
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[+] Position:Restore Required Reserves
Before the 1990's banks in Canada were required to maintain required reserves
? (deposits relative to their total liabilities) with the central bank.
This required reserve limited the ability of the banking system to create
money and expanded the ability central bank to do the same without increasing
inflation. As a result, the central bank could lend money to the government at zero interest. Some feel that the power to create money (and the ability to profit from it) should belong only to
public sector.
- Argument (for): include facts, sources, authorities, as much detail as you like.
- Argument (against): there can be multiple arguments, for and against, for each position.
[+] Position:Support local currencies.
In a country as large as Canada, one currency may not fit all - if the central bank restricts the money supply because of an oil boom in Alberta, British Columbia is doubly punished, first because its businesses are squeezed by the banking system that has to call in loans and second because it's exports are now overpriced because of a high exchange rate
?. Canada's government and central bank should support local currencies to develop, providing the flexibility to boost local economies where they need help.
- Argument (for): include facts, sources, authorities, as much detail as you like.
- Argument (against): there can be multiple arguments, for and against, for each position.
[+] Position:Peg the dollar against ecological and social justice indicators.
The value of the dollar would fluctuate according to a basket of indicators that can be independently verrified.
- Argument (for): even the corrupt & the powerfull would positive support social justice & envrionmental behavior which increases their buying power and the value of their holdings.
- Argument (against): a monetary architecture system must be very carefully crafted to avoid polluting intiatives to lower the dollar value in order to increase exports.
Sources and Resources
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