Sound Monetary Systems
Economies need sound monetary systems to prosper. The monetary system records current entitlements and obligations. For the monetary system to be sound, current entitlements must be balanced with current obligations. Economies that turn to printing money, thereby creating current entitlements without a current obligation, will falter and eventually collapse. This was the case for the Roman Empire and continues to be the case today in economies as diverse as Zimbabwe and Europe.
Buoyant Economies analyses existing economies and explains how the monetary systems in those economies are either supporting or undermining the prosperity of their economies. It seeks to show that there is a valid alternative to current economic theories. Neo-classical theories attempt to justify the practice of banks having unlimited authority to create (or print) money. Such theories are strongly supported by the financial market and banks.
However, it has been my experience that the financial market and banks do not understand the consequences of their actions on the real economy. The practices and systems that they support are unsound and unsustainable. Eventually, those practices and systems will severely damage the economy and destroy the banking and financial system.
Buoyant Economies has experience in modelling the macro economy. It is particularly interested in the modelling of economies experiencing growing domestic and foreign debt, high unemployment and low economic growth. The purpose of the models are to replicate the behaviour of the economy and enable a diagnosis of the problem or problems.
Unless economists are first able to model and diagnose the cause of the problem, they are unlikely to be able to solve the problem.
Modelling can be used to assist in assessing and developing alternative policies to address those problems. (See Saving the Euro)
The experience of the Philippines has shown that it is possible to transform an economy from one that has rising levels of foreign debt to one with falling debt levels and high rates of economic growth.
Buoyant Economies is able to provide assistance to economists seeking to implement policies that likewise reduce debt and raise incomes and employment.
It will endeavour to develop sound economic policies that address the underlying causes of the problems. These are intended to increase prosperity and resolve economic problems. Buoyant Economies is opposed to the application of policies that inflict pain on an economy as these are unlikely to be an effective path to reducing debt and raising the rate of economic growth and employment.