Gernot wrote:
"However miserly and problematic current SDRs may be, they are fiat
money created at the global level. That is important as a principle.
That means that the world system has already an organization that
performs a function that is normally performed by national central
banks, namely, creating fiat money out of nothing. In true
Anglo-Saxon fashion one could use that precedent and enlarge and
refine it. An organization that can create small amounts of fiat
money out of nothing could also create large amounts of fiat money
out of nothing. Why not? And instead of rescuing the rich with those
funds, it could disburse them to qualified recipients in poor
countries. (Details to be worked out by an army of economists.)"
"For a post-keynesian view on credit, including global-level, see,
for example, Moore, B. (1988), Horizontalists and Verticalists: The
Macroeconomics of Credit Money. Cambridge, USA: Cambridge University Press."
reply:
I'm not that familiar with Moore's thought (although I am aware of
him), and would appreciate a synopsis.
To me, the importance is the governance mechanism of the
SDRs............transparency, equal access, rules of the game that
support domestic tools to promote full employment, public investment,
and greater equality, as Keynes (that well-known radical)
supported.......The process gets more complicated when determining
the limits of money creation, and questions of full employment vs.
inflation, if there is not a better way to manage income distribution
already in place.....which is another issue of transparency.
I just rediscovered that Keynes wrote of the "euthanasia of the
rentier"..........which sounds somewhat utopian today.
Comments welcome.
Ann
At 07:04 PM 1/29/2009, you wrote:
Ann wrote [quote] The importance of a coordinated international
stimulus is also stressed by Roubini in the R G E Monitor newsletter
quoted below . . .[end quote]
Jim wrote [quote] are SDRs a substitute for the US$? would the
expansion of their supply undermine the legitimacy of the US dollar
as a _ world currency _? could they turn into bancor? [end quote]
COMMENT
Suppose the president of the US empire were a socialist (and his
ideological stand accepted and certified by the core members of
pen-l), what could be proposed to him as regards the global
dimension of the present crisis? My suggestion (i.e., issuing 1
trillion SDRs) is meant to indicate a direction of action and is not
meant as a blueprint ready for signature by the imperial president.
SDRs are presently issued by the IMF in rather small quantities.
Another minus is that they come from the IMF.
However miserly and problematic current SDRs may be, they are fiat
money created at the global level. That is important as a principle.
That means that the world system has already an organization that
performs a function that is normally performed by national central
banks, namely, creating fiat money out of nothing. In true
Anglo-Saxon fashion one could use that precedent and enlarge and
refine it. An organization that can create small amounts of fiat
money out of nothing could also create large amounts of fiat money
out of nothing. Why not? And instead of rescuing the rich with those
funds, it could disburse them to qualified recipients in poor
countries. (Details to be worked out by an army of economists.)
I believe that most socialists are cold to the notion and discrete
charme of global fiat money because it is not in the books of Old
Whiskers. KM believed in the gold standard. Gold was the true
international money in his view.
For a post-keynesian view on credit, including global-level, see,
for example, Moore, B. (1988), Horizontalists and Verticalists: The
Macroeconomics of Credit Money. Cambridge, USA: Cambridge University Press.
Gernot
----------
How fun is this?
<http://www.microsoft.com/windows/windowslive/messenger.aspx>IMing
with Windows Live Messenger just got better.
_______________________________________________
pen-l mailing list
[email protected]
https://lists.csuchico.edu/mailman/listinfo/pen-l
_______________________________________________
pen-l mailing list
[email protected]
https://lists.csuchico.edu/mailman/listinfo/pen-l
