Legalize Competing Currencies
Image by KAZVorpal
Free Market in Money
Monetary Policy Committee Chairman Ron Paul wishes to explore the idea of Nobel Laureate economist Friedrich Hayek, that money be a free market, not a government monopoly.
We have recognized that a government monopoly on most things, like food, clothing, cars, and computers is harmful. Is money really an exception?
Discuss the possibility of deregulating money, to allow a free market in competing currencies, here.
Jakarta Globe |
BOE Appointment Stirs Currency Market
Wall Street Journal NEW YORK—A central banker moving from Canada to England briefly woke up an otherwise relatively quiet currency market. The euro traded in a tight range Monday, drifting modestly lower as traders awaited a Greek debt deal. The U.S. "fiscal cliff" of … FOREX-Euro falls on lack of detail on Greece deal Asian Markets Rise on Greece Deal |
currency market - Google News
Throw some sand in the wheels of speculation
Image by JFabra
Professor James Tobin first suggested a tax to "throw some sand in the wheels of speculation" in 1972. His proposal was for a charge of between 0.1% and 1% on the conversion of one currency into another. This would be too low to discourage long-term investment; but would represent a substantial annual rate on transactions which involved buying and selling a currency within a single day, week or month.
The tax would have three main purposes:
to reduce exchange-rate volatility by reducing currency speculation;
to raise revenue for international organisations; and
to make national economic policies less vulnerable to external shocks.
A Tobin Tax would serve a number of objectives:
In so far as short-term, speculative transactions have a destabilising effect on currency markets, a fall in the volume of such transactions would reduce exchange-rate volatility. This, in turn, would improve the financial climate for "real" trade in goods and services.
The tax would also serve to put a "fiscal buffer" between economies. A government whose exchange rate was under threat would need to raise short-term interest rates by less in order to defend a particular parity than would otherwise be the case. The potentially damaging effect on growth and employment would consequently be reduced.
The tax would also, of course, raise revenue - perhaps some 0,000,000,000 a year world-wide, based on a 0.5% rate and trillion foreign exchange market turnover during each of 240 trading days(5). Prof. Tobin’s suggestion was that this should be paid into a central fund controlled by the IMF or the World Bank, so providing considerable extra resources for international stability programmes.
www.europarl.europa.eu/workingpapers/econ/107_en.htm#intro
|
Venezuela Currency Market Sold Fewest Bonds in Two Years
Businessweek Venezuela's central bank- administered currency market traded the lowest volume of bonds in more than two years. The Sitme, as the market is known, sold $ 13.3 million of bonds today, the lowest volume since June 2010, when the currency market was … |
currency market - Google News