Monday, 11 August 2014

New Zealand sets up a “Money Creation Committee”?

New Zealand’s Labour Party is proposing to give its central bank a say on fiscal stimulus. And that comes to the same thing as the Money Creation Committee advocated by Richard Werner and Positive Money (as part of the full reserve banking system advocated by the latter two). Hat tip to Scott Sumner, BTW.
I also like New Zealand for the way they refuse to give bank depositors any sort of deposit guarantee (because that amounts to a subsidy of the banking industry, and subsidies mis-allocate resources, as it explains in the introductory economics text books).
On a naughty note, New Zealand should also be congratulated for its legalised prostitution policy. Though as a 70 year old with most of my body parts no longer functioning properly, that’s of no interest to me personally.

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