Wednesday, July 29, 2020
Foreign Affairs — It Is Time to Abandon Dollar Hegemony–Issuing the World’s Reserve Currency Comes at Too High a Price
Foreign Affairs is a publication of the Council on Foreign Relations (CFR).
Time to resurrect Keynes (and E. F. Schumacher's) bancor proposal made at Bretton Woods but rejected in favor of using the US dollar as the global reserve currency? Presdient Nixon famously ended the Bretton Woods agreement when he closed the gold window, ending dollar convertibility into gold at a fixed rate. This set the world on a floating rate monetary system with the USD remaining the reserve currency.
Foreign Affairs
It Is Time to Abandon Dollar Hegemony–Issuing the World’s Reserve Currency Comes at Too High a Price
Simon Tilford and Hans Kundnani
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3 comments:
Since the MOST the risk-free "debt" of a monetary sovereign like the US should return is ZERO percent MINUS overhead costs = NEGATIVE, abandoning the role of world reserve currency could be as simple as pricing US debt, including "bank reserves"*, ethically.
*Having zero maturity wait, fiat account balances at the Federal Reserves should cost the most, i.e. most negative interest.
But the MMT School apparently thinks the number line stops at ZERO when it comes to pricing inherently risk-free debt properly and that a public UTILITY such as fiat should be FREE for large scale users/hoarders of it.
And yet Tom thinks the road to socialism is paved with fascism - which doesn't say much for the kind of "socialism" Tom imagines.
I guess they're working on a "done deal" and when the time is ripe, the little people shall be informed.
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