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.
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 dealReuters
Asian Markets Rise on Greece DealJakarta Globe
all 4,325 news articles »
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.
Venezuela Currency Market Sold Fewest Bonds in Two Years
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 …
and more »
currency market – Google News