Chris Cook — Thinking the unthinkable

 An energy standard

Taken to its logical conclusion, where this policy leads is for Iran's Central Bank simply to fix a new rial - with several zeroes removed - to a suitable unit of energy, and for energy prices to be set against this unit. This could be implemented in a similar way that a deficit-based abstract currency unit was fixed to participating European currencies at the launch of the euro.

The transition process would need to be properly and transparently managed by a monetary authority - probably the Central Bank - in close liaison with the oil and gas complex. The outcome of adopting an "energy standard" and an energy dividend in this way would be to rapidly reduce profligate use of energy at the same time as addressing the problem of inflation.

Read it at Asia Times Online
Thinking the unthinkable
by Chris Cook (h/t Kevin Fathi)