Technicalities of the
Monetary System discusses the theoretical explanation for why bank
credit causes current account deficits and why the solutions
presented in the Optimum exchange rate system and the Guided
exchange rate system bring about current account balances.
and unsustainable debt considers monetary growth and the
associated domestic and foreign debt and compares it to the
relatively slower growing national income, to reveal that eventually
an economy may not be able to service its debt levels and so
experience a financial crisis.
"Safe mode" for the
economy proposes a series of steps that can be taken during a
monetary crisis to put an economy onto a stable and sustainable
The guided exchange rate
and liquidity system provides an outline of a variable exchange rate system
that ensures balance of payments stability and allows the central
bank to influence the exchange rate and the growth of liquidity to provide exchange rate
stability and economic growth.
provides a simple macro-economic model that can
be downloaded and demonstrates the effect of the floating exchange
rate system and the optimum exchange rate system on the economy.
The following is
a list of papers available in PDF and word format. The first 3 were presented at
the Australian Economic Society Conference in Adelaide in 1995. (Note
that these are large files and they may take a while to download.)
Submission to the New Zealand Savings Group. Considers different
forms of saving and discusses the US response in 1973 to the growth
of bank credit and declining foreign reserves. Recommends an
approach to manage bank lending according to national savings.
Monetary Alliance (MS Word 45 KB): An international
institution for mutual support of currencies to provide balance of
payments stability and exchange rate stability suitable for economies
with fixed and variable exchange rates.
the Euro: Discusses the causes of
the failure of the Euro. Provides a
painless remedy for Europe and the Euro. A number of options are
tested in models before a sustainable system is proposed.