DOI: https://doi.org/10.18371/fcaptp.v1i32.200587

ALTERNATIVE CONCEPTS OF MONETARY SYSTEM DEVELOPMENT IN THE PAPERS BY ACADEMIC ECONOMISTS OF THE ХХth CENTURY

I. H. Skomorovych, S. M. Lobozynska, U. V. Vladychyn

Abstract


After demonetization of gold in the countries with market economy the credit nature of money emission and monopoly of central banks for it became the basis for monetary systems. However, over the ХХth century there kept appearing alternative concepts of monetary system development and functioning, the authors of which expressed their suggestions as to most efficient arrangement of the state’s monetary system. The article aims to outline the core directions along which, in the opinion of academic economists, the financial domain should be reformed.

Among the most famous economic schools, neoclassicists have criticized the existing order and the stressed the need for reconstructing the monetary system the most. I. Fisher, L. von Mises, M. Rothbard, F. von Hayek, J. Huerta de Soto have not just revealed negative consequences of inflation, consistently proved the criminal nature of fiduciary emission, disclosed lack of logic in the existence of the fractional-reserve banking, but have also developed their own rules for arranging national and international monetary systems. Their projects were based on the gold security of money, organization of their emission on market principles up till emission transfer to private hands and liquidation of the central bank. In current conditions that has been reflected in the appearance of cryptocurrencies with private issuers, but without any material security.

The representative of Keynesianism R. Harrod suggested replacing the golden standard for the commodity one. The proponents of the theory of free money (S. Gesell and M. Kennedy) initiated introduction of a fee for money possession, which should urge to spend it on commodity acquisition or crediting as quickly as possible. Domestic scientist M. Tymofiyiv, working in emigration, developed the project of issuance of money certificates secured with grain kept at the warehouses of their issuers — Grain-Growing Banks, and was trying to convince everyone that this is the money that will never lose its value.

Thus, the most popular concepts of monetary system development, alternative to modern concepts, are return to the golden, or any other commodity security of monetary units and the possibility of private money emission.

Keywords


monetary system; gold standard; fractional reserving; private money; commodity-based money; free money; cryptocurrencies

References


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ISSN (print) 2306-4994, ISSN (on-line) 2310-8770