BC Functional requirements for Monetary Sovereignty

2016-05-30

 * SovMon policy should be able to influence, and where necessary control, the inflows and outflows of funds from overseas - this is broader than only credit inflows, as mentioned by Kath; this is a complex area, but the days of extreme liberalisation are past; even the IMF now advocates forms of capital controls. I would ideally like to see this reinforced by a Financial Transactions Tax, as is being developed by the core EU nations.
 * SovMon should be able to differentiate between speculation and productive investment (it is implied by Kath's post on the characteristic of credit, but may need to be made more specific).
 * SovMon policy should be accountable and transparent, specifically linked to agreed social aims (without getting too much into specifics, it may be worth discussing the need for a greater degree of independence and diversity in the body that provides advice to the Reserve Bank).