RS Functional requirements for Monetary Sovereignty

2016-05-23

 * Sovereign money may well be the best way to create structural change coming out a recession eg it would have made a radical difference today, if in 1996 NZ had implemented strong energy efficiency standards, put in a meaningful carbon tax and used Reserve Bank credit to offer low-interest loans for businesses and households to invest in energy efficienct new technology.   This approach can bring a real positive difference as it largely focuses on the first two points above.


 * However as John commented earlier, if the economy is at or close to full employment, Reserve Bank credit is simply inflationary.




 * So I do think that the functional requirement for Sovereign Money is simply a political willingness to use this tool plus the existence of a borrowing facility with the Reserve Bank for the Crown.

2016-09-21
1    Human activity occurs at a rate and at a scale that maintains the capacity of global and local ecosystems to sustain themselves and in a way that supports climate stabilisation.

2    Positive engagement and collaboration with the whānau and whenua-centred assumptions and practices of the Māori economy and the role of hapū as kaitiaki.

3    Getting the most long term benefit from each resource and from resource use across society, enhancing productivity and minimising waste.

4    Empowers people to choose a level of material consumption that is sufficient and within ecosystem capacity at local, national and global levels.

5    * Total (public and private) debt and international position of Aotearoa New Zealand are at sustainable levels

6    Foster creativity, innovation and sustainable technology

7    Strengthen resilience ie the capacity of New Zealand's economy and our social networks to withstand and adapt to economic and ecological shocks.

8    Deliver basic material security and sufficient income for all, and a fair distribution of the economy's benefits and burdens