Sovereign Money

Huber, Joseph

doi:10.1007/978-3-319-42174-2

Cited by 33 publications

(13 citation statements)

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“…In establishing a global economy where biophysical resources can hope to be distributed sustainably and equitably, there must, essentially, exist some form of democratic control over new money issuance methods. As discussed cogently by Huber (2017) and Huber and Robertson (2000), for example, ideas of "sovereign money" should be carefully considered as legitimizing alternatives to the modern money system. Sovereign money involves, first, declaring in law that all demand deposits are legal tender and that the current accounts of bank customers be taken off the balance sheets of banks-commercial banks must manage the current accounts of customers separately from their own money.…”

Section: Who Should Be Responsible For the Issuance Of Money?mentioning

confidence: 99%

The dual nature of money: why monetary systems matter for equitable bioeconomy

Renner

Daly

Mayumi

2021

Environ Econ Policy Stud

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Section: Who Should Be Responsible For the Issuance Of Money?mentioning

confidence: 99%

The dual nature of money: why monetary systems matter for equitable bioeconomy

Renner

Daly

Mayumi

2021

Environ Econ Policy Stud

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“…Thus, a sovereign is the ultimate overseer of a country's decision making processes [30] and in modern law, sovereignty refers to the full right and power of a nation state to govern itself. Modern democratic nations have deferred monetary sovereignty to their central banking authorities [ [31]. In India, a 1934 Act conveyed that privilege on the Reserve Bank of India (RBI) [32].…”

Section: Demonetisationmentioning

confidence: 99%

Towards a post-cash society: An application to convert fiat money into a cryptocurrency

2017

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In this paper, we discuss an application that uses blockchain technology to transfer fiat money into a cryptocurrency -Ether. A typical use of this technology could be to become a component of a larger system, whereby, after traveling, a customer can exchange leftover foreign currency for their local denomination. However, a more interesting application could be to convert fiat money into a cryptocurrency to facilitate a demonetisation scheme, such as that implemented recently in India. In the latter context, we describe the development of our blockchain application against the ramifications of demonetisation and whether the Indian government could have augmented that scheme through technology such as ours. We discuss why the Indian government has not contemplated such a measure, which also leads to a discussion of whether they might have considered adopting their own cryptocurrency. However, even though the Indian public seems willing to adopt the technology, we find that unlikely. Finally, we show that our application demonstrates that fiat money to cryptocurrency conversion is technically feasible, but the Indian government is unlikely to consider such technology due to issues surrounding monetary sovereignty.

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“…The current debate on monetary reform is controversial (e.g., Deutsche Bundesbank [ 3 ] vs. Huber [ 4 ]). The main issue of dissent is whether the current system is inefficient and ineffective in terms of macro-financial stability compared with available alternatives (e.g., optimal money supply, effective financial intermediation, shadow banking).…”

Section: Introductionmentioning

confidence: 99%

“…The main issue of dissent is whether the current system is inefficient and ineffective in terms of macro-financial stability compared with available alternatives (e.g., optimal money supply, effective financial intermediation, shadow banking). There are two contrary reorganization approaches to the current monetary system that both claim to lead to a less fragile financial system: First, the sovereign money system that centralizes money creation towards sovereign control via a strict separation of money and credit [ 4 ]. A more detailed overview and recent political developments are summarized by KPMG [ 5 ].…”

Section: Introductionmentioning

confidence: 99%

“…Both models refer to a full reserve system (100% money [ 25 ]) with synchronization rather than separation of money and credit (narrow banking). However, the split circuit between money and credit is seen as a source of an unstable monetary system [ 4 ]. Furthermore, a monetary reform is often misunderstood with a banking reform and should be differentiated in the model.…”

Section: Introductionmentioning

confidence: 99%

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A basic macroeconomic agent-based model for analyzing monetary regime shifts

et al. 2022

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In macroeconomics, an emerging discussion of alternative monetary systems addresses the dimensions of systemic risk in advanced financial systems. Monetary regime changes with the aim of achieving a more sustainable financial system have already been discussed in several European parliaments and were the subject of a referendum in Switzerland. However, their effectiveness and efficacy concerning macro-financial stability are not well-known. This paper defines the economic requirements for modeling the current monetary system and introduces the corresponding macroeconomic agent-based model (MABM) in a continuous-time stochastic agent-based simulation environment with a provenance model. This MABM aims to present a starting point for exploring and analyzing monetary reforms. In this context, the monetary system affects the lending potential of banks and might impact the dynamics of financial crises. MABMs are predestined to replicate emergent financial crisis dynamics, analyze institutional changes within a financial system, and thus measure macro-financial stability. The used simulation environment makes the model more accessible and facilitates exploring the impact of different hypotheses and mechanisms in a less complex way. Moreover, the model replicates a wide range of stylized economic facts, which validates it as an analysis tool to implement and compare monetary regime shifts.

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Sovereign Money

Cited by 33 publications

References 0 publications

The dual nature of money: why monetary systems matter for equitable bioeconomy

The dual nature of money: why monetary systems matter for equitable bioeconomy

Towards a post-cash society: An application to convert fiat money into a cryptocurrency

A basic macroeconomic agent-based model for analyzing monetary regime shifts

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