3. Alternative Monetary Systems For a state to say that it cannot realise its objectives
because there is no money
is the same as saying that one cannot build roads
because there are no kilometres.
Ezra Pound63
There are, to put it mildly, very different opinions on how the monetary system should be reformed. Some even think that money in itself is an evil and for that reason want to abolish the monetary system altogether. The focus of this third chapter is to show different aspects of alternative monetary systems, which can differ depending on how a specific system is designed. At least seven such aspects, listed on the following page, can be distinguished.
1) Control. Who has control over the creation of money? What agenda are those in control serving? What principles are consequently applied in regulating the monetary system and the monetary supply?
2) Reserves. Should the banking system be based on fractional or full reserves? This is indirectly connected to the first aspect because fractional reserve banking means banks can create money when they issue loans. Full reserve banking means that banks cannot lend money without the permission of the depositor and thus cannot create money by granting credit.
3) Convertibility. Should a currency be tied to, for example, gold? Should it be a fiat currency, which is not tied to a certain quantity of a specific good or service?
4) The interest mechanism. Should the interest mechanism keep the same role it has today? Should all interest be viewed as usury? Should it be something in-between, for example by making the process under which new money is issued interest-free?
5) Integrity and transparency. Should the aim of a currency be to monitor all transactions or to maximise personal integrity and make anonymous transactions possible? Is the banking and monetary system easy to understand for the public and thus transparent from the point of view of scrutiny?
6) Monoculture or multiculture. Should one strive to have a single currency in a society or should there be monetary diversity on a global and national level?
7) Goal function. The goal function refers to the aggregate purpose (whether it is articulated or not) of a certain monetary and banking system. All of the above mentioned aspects are based on the goal function for what a certain system strives to accomplish and can be adapted to the specific conditions in a specific society.
3.1 Control
The control of the banking and monetary system can be centralised to a single institution or distributed among several institutions. The most basic aspect of this control is regulation of money supply, including its creation and destruction. John Maynard Keynes argued that inflow of new money does not cause a general rise of the price level as long as there is untapped production capacity because of low purchasing power. However, Keynes did not put as much focus on how such influx would come about. There is a crucial difference between money being issued as interest-bearing debt to commercial agents, as is the case today, compared with an institution issuing it by buying goods and services on behalf of the public without commercial banks as intermediaries. The inventor Thomas Edison was perhaps an unexpected advocate public reform according to this principle, notably in an interview with The New York Times in December 1921:
If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good, makes the bill good, also. The difference between the bond and the bill is the bond lets money brokers collect twice the amount of the bond and an additional 20%, whereas the currency pays nobody but those who directly contribute to [society] in some useful way. … It is absurd to say our country can issue $30 million in bonds and not $30 million in currency. Both are promises to pay, but one promise fattens the usurers and the other helps the people.64
There is reason to suppose that the most central public projects can be financed by spending new money into circulation, rather than lending it into circulation as is done today. Even if the purchasing power is already maximised, and new money thereby causes a general rise in the price level instead of increasing productivity, one might accept a minor annual rise in the general price level, of for example two per cent, as a form of indirect taxation. Certain investments can potentially also give returns that can be recirculated into the economy, whereupon it is paid back — for example, a new energy plant that charges a fee for electricity. Such investments consequently do not affect the monetary supply over the whole process.
An alternative way to spend currency into circulation by public purchases is so-called social credit, formulated in C. H. Douglas’ Social Credit of 192465 , which suggests that the state issues new currency directly into citizens’ wallets as a form of basic income. In certain contexts, currency spent into circulation through the public budget is referred to as ‘Greenbacks’, named after the special form of dollars with a green backside that were issued by Abraham Lincoln’s administration to finance the Union forces in the American Civil War.66 An example of a monetary system in which the state spends money into circulation, rather than first borrowing and then spending it into circulation like today, can be found even further back in history. Tally sticks operated as legal tender in medieval England. The tallies were decorated pieces of wood broken into two matching parts. One half was spent into circulation by the royal power and was accepted as tax payment. As all pieces were broken in a unique way, the tallies were hard to counterfeit and fraud was detected at the latest when the tally was returned to the issuer. The tally currency functioned as means of exchange until a gold standard succeeded it after the introduction of the Bank of England in 1694.67 According to Thorold Rogers, a 19th century economist and historian from Oxford, by the end of the 15th century an ordinary peasant or worker in England could provide food for his family for a year by working between 10 and 15 weeks.68 Such a number indicates that the economic system of the time functioned well for the broader public, which should be possible to ascribe at least partly to the tally currency.
The hyperinflation in the Weimar Republic between 1920 and 1923 has been used as a warning of why it is not a good idea for the state to control the money machine. However, Hjalmar Schacht, director of the Reichsbank in the Weimar Republic between 1923 and 1931, and in Nazi Germany between 1933 and 1939, testified about aspects of the German economy in those periods that are generally not mentioned in modern textbooks. In his book The Magic of Money, published three years before his death in 1970, Schacht mentions that loans granted by the Reichsbank for private speculation in the early 1920s were a contributing factor to the runaway inflation.69 Furthermore, Schachts offers a complementary explanation to how following Adolf Hitler’s rise to power in 1933, Germany was able to recover from economic ruin and mass unemployment in such a short time and become Europe’s leading industrial nation, with full employment. The economic recovery in 1930s Germany is especially spectacular considering that it took place during the Great Depression, a time in which the rest of the world suffered severe economic hardship. Some point towards the discontinued payments of the war indemnities imposed under the Treaty of Versailles as a contributing factor while others have supposed that it was made possible by the confiscation of Jewish-owned assets. Foreign investment and support from the Bank for International Settlements have also been mentioned as possible variables in the equation. According to Schacht, the primary factor was the implementation of the MEFO bills that the state, in cooperation with the Reichsbank, started to inject into the economy soon after Hitler’s takeover:
The MEFO system was a noteworthy example of the fact that it is possible to make up for a lack of capital by means of credit without any risk of engendering an inflation that causes price rises. [...] The English economist J. M. Keynes has dealt with the problem theoretically, and the MEFO transactions proved the practical applicability of such an idea.70
Schacht describes the design of the MEFO system as follows:
The system worked in the following way: a company with a paid-up capital of one million marks was formed. A quarter of the capital was subscribed by each of the four firms Siemens, A. G. Gutehoffunungshiitte, Rheinstahl and Krupps. Suppliers who fulfilled state orders drew up bills of exchange for their goods, and these bills were accepted by the company [as payment]. This company was given the registered title of Metallforschungsgesellschaft (Metal Research Company, ‘MEFO’ for short), and for this reason the bills drawn on it were called MEFO bills. The Reich guaranteed all obligations entered into by MEFO, and thus also guaranteed the MEFO bills in full. […]
One other aspect was even more unusual. The Reichsbank undertook to accept all MEFO bills at all times, irrespective of their size, number, and due date, and change them into money. The bills were discounted at a uniform rate of four per cent. By these means the MEFO bills were almost given the character of money, and interest-carrying money at that. Banks, savings banks, and firms could hold them in their safes exactly as if they were cash.71
With these words, Schacht recognised the success of the MEFO bills. At the same time, in the final years of his leadership, he did not want to advance the system in the way that the highest state leadership wished for. Schacht claims that this was the reason why he was forced to abandon his post in January 1939.72 In Mein Kampf (1925) it appears Hitler had strong personal opinions on banking and monetary policy. In chapter 8, titled Beginnings of My Political Activity, Hitler writes that the monetary question became part of his political platform as early as 1919, thanks to a Gottfried Feder:
When listening to Gottfried Feder’s first lecture about the breaking of the tyranny of interest, I knew immediately that the question involved was a theoretical truth that would reach enormous importance for the German people’s future. [...] Germany’s development already stood before my eyes too clearly for me not to know that the hardest battle had to be fought, not against hostile nations, but rather against international capital. […] The fight against international finance and loan capital has become the most important point in the program of the German nation’s fight for its independence and freedom.73
Along with Anton Drexler, Feder was one of the Nazi Party’s earliest key personalities. As its leading economic ideologue, Feder formulated, among other things, the party’s plans for the decisive elections in 1932 and 1933. Besides the anti-Semitic features, the party programme states of its economic principle on page 30: ‘Finance shall exist for the benefit of the state; the financial magnates shall not form a state within the state. Hence our aim to break the thraldom of interest.’ In more concrete terms, it is advocated that the state should abolish its debts to the great financial houses, issue interest-free currency to finance public projects and establish a bank in order to grant interest-free loans for business development.74 Schacht, who was not a National Socialist, opposed several of these reforms and also seems to have managed to ward them off during his leadership. Schacht writes in The Magic of Money:
National Socialist agitation under the leadership of Gottfried Feder was directed in great fury against private banking and against the entire currency system. Nationalisation of the banks, liberation from the bondage of interest, the introduction of a state ‘Feder’ giro money, these were the catchphrases by which an end was to be made to our monetary and banking economy. I had to try to steer Hitler away from these destructive conceptions.75
Schacht’s statement, together with his background in the international financial sector, makes it seem curious that upon the National Socialists taking power Feder only got a marginal position in the new government while Schacht was appointed president of the Reichsbank and minister of economics. Even though Schacht’s MEFO bills saved the country in the short-term they were emitted, if Schacht’s description is correct, as an interest-bearing debt according to principles that are very similar to the dynamics of the modern monetary system. One of several possible explanations for the appointment of Schacht rather than Feder is his earlier experience and that it was part of alliance building with industrial interests, among which Schacht was far more popular than the more populistically-focused Feder. Despite the tragedies that this epoch brought with it, one can conclude that it constitutes a remarkable chapter in monetary history that shines further light on the great political drama that has surrounded the control of the banking and monetary system.
Options for reforms intended to raise awareness of money power as a central social instrument of power include acknowledging it as a fourth independent power alongside the legislative, executive and judicial, and introducing general elections for a chief executive or a board of governors to oversee this power. One might also emphasise that money power does not necessarily have to be a public institution. It can also be controlled by a non-profit organisation or commons trusts, according to Peter Barnes’ description in Capitalism 3.0.76 The Wikimedia Foundation is one example of how such commons trusts can be used, in that case to manage the non-profit encyclopedia Wikipedia. Theoretically, it is possible to build a currency commons using the same principle. Local Exchange Trading Systems, or LETS, offer many examples of how such currency commons can be designed on a local level. LETS first developed in the 1980s in Courtenay, Canada — a town blighted by an unemployment level of around 40 per cent. Having noticeably improved the situation, the local population embraced the new currency and it has since spread over the whole world in many variations.77 The name of a specific currency can vary and LETS is just a common denominator for the basic idea of constructing a currency commons under local, regional, national or potentially even under global control. A business-to-business variation of a LETS-like system is the Swiss currency WIR, which has operated on a national level in parallel with conventional currency and has helped stabilise the Swiss economy since 1934.
According to a study from 2010, the WIR was used by 16 per cent of all Swiss companies.78 A typical LETS scheme gives every person in a currency commons (geographical or with another common denominator for its users) the right to a certain amount of interest-free credit, which they can use to buy goods and services. For example, a person can go to the hairdresser and agree to pay, let’s say, €5 and L15. The customer’s LETS account is then debited with -L15 while the hairdresser is credited +L15 for the service. In this moment, new money gets created. The amount of credit every person is allowed to create, and the rules applied to grant credit, can be designed freely depending on the needs and goals of the society in question.
3.2 Reserves In order for money creation to be shifted from private to public or other common control, the current system based on fractional reserves must be reformed into a system based on what is called full reserves. Fractional reserve banking also makes the system vulnerable. This is because problematic situations can arise if a certain amount of depositors decide to withdraw their money from the bank or cannot meet their loan obligations. The International Monetary Fund counts the number of financial crises between 1970 and 2010 at 425, which splits as 145 banking crises, 208 currency crises and 72 national debt crises.79 Of these, at least the banking crises are interlinked with the fragility built into systems based on fractional reserves.
Regarding financial stability, it is also worth mentioning the big insurance companies. When the financial crisis of 2008 set in, it was not only banks that needed extra support to avoid collapse. Big insurance companies such as AIG were also in need of rescue packages, in large part because of Credit Default Swaps (CDS), which in the aftermath of the crisis became known as financial weapons of mass destruction. In practice, CDS is an equivalent in the insurance business of fractional reserve banking, in the sense that they originate from insurance companies making far greater commitments than they can carry out in times of financial crisis.
A reform designed to prevent such financial crises is the Chicago Plan, which was presented as early as 1933 at the University of Chicago. Its authors took inspiration from Frederick Soddy’s work in an attempt to reform the American economy during the Great Depression. IMF economist Michael Kumhof, mentioned in the second chapter, is among those who have brought up the plan in a modernised version.80 In general terms, the Chicago plan entails a transition to the system many people mistakenly believe is already in place — that banks can only lend money they get from deposits. After such a reform, lending would demand the permission of the depositor, which means the depositor cannot demand the money back while the money is lent out for the simple reason that both lender and borrower are very aware that the money is lent out. With such a reform, bank runs would no longer be a potential problem as all the money available on the customer’s account, in a system based on full reserves, must always be in the bank. Another consequence of this reform is that depositors can more easily control the ways in which their money is used. Under the Chicago Plan seigniorage, which is the profit from creating new money, would be transferred from commercial banks to the public. The proposal by Chicago-inspired IMF economists has a strong resemblance to a proposal by British think-tank Positive Money.81
Positive Money’s vision includes a transition to full reserves by distinguishing deposit accounts, in which money is simply stored, and accounts for lending and investment. Furthermore, the proposal advocates, among other things, allowing money creation to be controlled by an independent and democratically elected committee, which would decide on the amount of money to be added into the economy while the government would be responsible for the spending of the money. Such a system differs from the current central banking system in that new money is injected into the real economy first, rather than today’s entry via mortgage loans and purchasing various security papers on the financial markets, which only indirectly stimulates the real economy. These measures aim to decrease the risk of housing market bubbles and stimulate employment more effectively.
Soddy’s suggestion on how a transition to full reserves could be implemented without causing financial meltdown, which is the danger if the process is handled carelessly, was to let banks lend new money from the state bank to cover their reserve deficits. With this maneuver, the banks would retain their liquidity without having to recall loans and public debt would be decreased, settled or turn into a demand. Viewed in the context of fractional versus full reserves, the Single Resolution Mechanism under which the European Banking Union’s member countries have a collective responsibility to rescue failing banks is thus a solution focusing on the symptoms and not on the underlying causes of the current instability of the financial system.
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3.4 The Interest Mechanism
An old story tells of a Persian emperor who was so excited about the new game of chess that he offered to grant its inventor any wish. The inventor was a very clever mathematician and asked for one grain for the first square on the board, two grains for the second and a doubling amount on each of the remaining squares. The emperor was at first very happy at the apparent modesty of the mathematician, until he realised that this exponential growth would demand that he gave him more grain than was available in the whole world, only to satisfy the amount of grain asked for in the last square.
Perhaps it is such exponential dynamics on compound interest that led Aristotle and the prophets of the old Middle East to clearly articulate how one is supposed to use and lend money in accordance with the higher natural order.
It is stated in the Koran that trade is not contrary to God’s will. However, interest (referred to as usury) is categorically condemned:
Those who eat usury (Riba) will not stand (on the Day of Resurrection) except like the standing of a person beaten by Satan leading him to insanity. That is because they say ‘Trading is only like usury,’ whereas Allah has permitted trading and forbidden usury. So whosoever receives an admonition from his Lord and stops eating usury shall not be punished for the past; his case is for Allah (to judge); but whoever returns to usury, such are the dwellers of the Fire — they will abide therein.86
In the Old Testament, Deuteronomy presents a markedly different approach that shows the perspective on loans and interest as mechanisms of social control is very old:
For the Lord your God will bless you, as he promised you, and you shall lend to many nations, but you shall not borrow, and you shall rule over many nations, but they shall not rule over you. [...]
You shall not charge interest on loans to your brother, interest on money, interest on food, interest on anything that is lent for interest. You may charge a foreigner interest, but you may not charge your brother interest, that the Lord your God may bless you in all that you undertake in the land that you are entering to take possession of it.87
With such diametrically opposed take-off points as those above, it’s understandable that the interest issue has been a contributing factor to tensions between the Abrahamic religions. Jesus was, at least based on the New Testament, not as explicit in this regard as were Moses and Muhammad. Nevertheless, one might note that the only time Jesus is said to have been violent was when he drove the money changers out of the temple and accused them of having made it into a den of robbers.88 This Biblical episode might have been a contributing ideological factor to the temporary restrictions regarding interest applied by the Catholic Church.
A general moral objection to interest is that it provides a profit for the creditor without production of a good or service. The systemic challenge for an interest-free banking and monetary system, as is advocated by the Koran, is to find functioning substitutes to the advantages of interest such as incentives to lend money and repay loans. JAK Member bank in Sweden has developed its own solution to this by demanding a certain amount of saving before, during and after the borrowing period as a counter-performance to the granting of credit. The monthly costs of the loan are about the same as the costs of an ordinary bank loan but the difference is that a borrower at JAK, after paying off the loan, has saved a considerable amount of capital they can then freely dispose of. Besides completely interest-free models such as JAK, there are other modern alternatives for reforming the role of the interest mechanism in the societal order. Ellen Brown suggests that interest should finance the costs of the public and uses a vivid fiction to illustrate this:
The Wicked Witch of the West rules over a dark fiefdom with a single private bank owned by the Witch. The bank issues and lends all the money in the realm, charging an interest rate of 10 per cent. The Witch prints 100 witch-dollars, lends them to her constituents and demands 110 back. The people don’t have the extra 10, so the Witch creates 10 more on her books and lends them as well. The money supply must continually increase to cover the interest, which winds up in the Witch’s private coffers. She gets progressively richer, as the people slip further into debt. She uses her accumulated profits to buy things she wants. She is particularly fond of little thatched houses and shops, of which she has an increasingly large collection. To fund the operations of her fiefdom, she taxes the people heavily, adding to their financial burdens.
Glinda the Good Witch of the South runs her realm in a more people-friendly way. All of the money in the land is issued and lent by a ‘people’s bank’ operated for their benefit. She begins by creating 110 people’s-dollars. She lends 100 of these dollars at 10 per cent interest and spends the extra 10 dollars into the community on schemes designed to improve the general welfare — things such as pensions for retirees, social services, infrastructure, education and research and development. The $110 circulates in the community and comes back to the people’s bank as principal and interest on its loans. Glinda again lends $100 of this money into the community and spends the other $10 on public schemes, supplying the interest for the next round of loans while providing the people with jobs and benefits. For many years, she just recycles the same $110, without creating new money. [...] Best of all, taxes are unknown in the realm.89
An example of a government owning its own commercial bank, with the possibility to grant credit and use interest income for public purposes, is the Bank of North Dakota, which has been active in the state of the same name since 1919. A political objection to public ownership of banks (or other types of ownership such as commons trusts) is that it is a type of socialism or communism not suited to a modern market economy. However, if interest profits are used to fully or partly replace taxation, one can argue that there is also a capitalistic aspect that is as essential as the socialistic aspect of public ownership of banks. One can also conclude that concepts such as socialism and capitalism are not always used in a consistent manner in the political debate. One example of this is that buy-ups financed by the public can be referred to as ‘socialistic threats’ while bailouts financed in exactly the same way (e.g. during and after the financial crisis of 2008) can be referred to as ‘a prerequisite for capitalism’. An alternative to both buy-ups and bailouts is to issue future rescue packages to failing financial institutions as loan packages and thereby compensate the public with an interest-bearing claim on the banks in question.
The Chicago Plan and the reform proposals by Positive Money mentioned in chapter 3.2, under which money is created only by a public institution while a commercial bank would still be allowed to lend against interest, are in this context more moderate alternatives that can possibly lessen the negative effects of interest on a macro level.
When discussing interest mechanism reform, we must finally mention demurrage fees, which may be viewed as a form of negative interest. Demurrage is not negative interest in the sense that one gets paid to borrow money but that one pays a fee to hold money. The earlier analysis of Terra is a theoretical example of such a set-up. The most famous practical example of a monetary system based on demurrage fees is the Austrian currency Wörgl, which was used in a small town of the same name in 1932.90 In 1931, the mayor of the town, Michael Unterguggenberger, was in a desperate economic situation in the aftermath of the Great Depression and convinced the town’s administration to test the principles laid out by the German economist Silvio Gesell in his book The Natural Economic Order (1918). The experiment was based on a currency with a monthly demurrage fee of one per cent. The fee was represented with stamps, which could be bought in local shops and were put on matured notes at the end of each month.
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3.7 Goal Function
The goal function of the monetary system is not to be confused with the goals of the central bank, such as, for example, price stability or full employment. This is because the central bank only makes up one aspect of the banking and monetary system. The goal function describes the purpose of the monetary system as a whole, whether it is explicitly stated or not. Viewed as a whole, the current system is in practice, even though it is not explicit, based on what can be described as a chrematistic goal function by which financial and (indirectly) political capital is concentrated to financial institutions. On the one hand, the goal function is a more general aspect that can seem less concrete than the previously mentioned aspects. On the other hand, one should bear in mind that the goal function makes up the basic foundation that the six previously mentioned aspects must be based upon. The systems presented in the third chapter are mainly based on goal functions that have a common denominator in that they strive for the monetary system to serve the interests of the public rather than to make the public serve a financial elite, with a money flow that meets the potential supply of goods and services or, according to Soddy’s terminology, the virtual wealth. In such systems, the aggregated capacity of the economy does not depend on whether there is enough money or not but on access to human capital and raw materials. It is from this perspective that one should read the quote from Ezra Pound’s article What Is Money For, which opened this chapter:
For a state to say that it cannot realise its objectives
because there is no money
is the same as saying that one cannot build roads
because there are no kilometres.
Francis Bacon is said to have coined the phrase that money is a good servant but a bad master, which is a good summary of a chrematistic goal function that accumulates capital to an elite, in contrast with an alternative goal function that serves the interests of the public.
Epilogue Based on what has been presented in this book, it should be evident that there are dimensions of the monetary field that have to a large extent been neglected in science, media and politics. In the discussion it has been shown that money power can be viewed as a social management tool, just as with the executive, legislative and judicial powers. From this perspective, it can be noted that the discrepancy between different banking and monetary systems is as significant as that between radically different political systems.
The current monetary system furthers centralisation of economic and political power to a financial elite, which has been possible because the system is difficult to grasp not only for the masses but also for the so-called intellectual elite. Because banks, money and debt have generally been viewed as fringe issues without any importance to economic and social development, economists have not put enough attention on exploring the field from new perspectives that can give a better understanding of the properties of money power.
A perspective that can offer new possibilities for analyzing different types of monetary systems and their socio-economic consequences is to view economics as an energy science analogous to electrics and mechanics. Based on the document Silent Weapons for Quiet Wars, money can be viewed as potential economic energy moving in the opposite direction of goods and service production, which in turn correspond to dissipative and kinetic energy respectively. Compared with conventional theoretical frameworks such as the quantity theory, the energy theory implicitly makes it clear that it is not enough (although necessary) to take into account money supply and speed of circulation in order to understand fluctuations in price and production, and that tendencies in the monetary flow must also be taken into account.
An example of how an analysis of monetary flows can contribute with more clarity is the way in which quantitative easing (QE) by central banks can exist in parallel with low price inflation or even deflation. A model such as the quantity theory does not catch up that QE is issued by buying obligations that primarily affect the stock market rather than the real economy.
Conventional models also overlook to a large extent the way in which economic actors are indebted to each other and how these relations affect power relationships in different sectors of society. The current situation in which individuals, corporations and whole nations have been put in a position of dependency in relation to global finance could most probably not go on for very long if economists established new standard models that exposed this dynamic. A related area that could benefit from flow-based analysis is how the flow of interest income and expenditure affects private and public actors, and whether negative interest systems such as, for example, that of Wörgl can give rise to a different dynamic.
The author’s ambition with this work is not to suggest an all-encompassing monetary solution on a national and international level but it is highly desirable that other economists eventually respond to that challenge. However, regarding potential solutions, one can conclude that several of the alternative monetary systems presented in the third chapter have a common denominator in that they do not let the banking and monetary system automatically serve the interests of a specific group of people or institutions and instead put it in service of the public interest. One might add that alternative monetary systems have different characteristics and different types of economies can make use of this by adapting the respective aspects of a monetary system such as control, convertibility and interest (in a classical sense or negative interest in the form of demurrage), depending on the conditions of the economy in question. The increasing number of cryptocurrencies in the wake of Bitcoin, together with the increased use of parallel local currencies, could be an early sign of an impending monetary revolution that might eventually change the financial system in a way similar to the internet’s impact on the media landscape, even if change proves to be impossible to make from a political level. Economists are therefore urged to prepare for such a scenario by putting a greater focus on the monetary question.
The author hopes that this book can encourage other researchers to pick up and further clarify the dynamics of the current system, including its political consequences, and explore which alternative systems are most appropriate from national, regional and international perspectives. Hopefully, the study of money power can continue in the spirit of Frederick Soddy, whose words from 1934 neatly sum up what should be the fundamental purpose of continued research and its application:
Let us not enslave men that pretenders may rule, but take back our sovereign powers over money in order that men can be free.99
Money Power
A Force for Freedom or Slavery?
Isac Boman