User talk:MuraleedharanKP

ADVANCED ECONOMIC SYSTEM

- By Muraleedharan KP

Abstract

An Economic system having the power to supply ‘unlimited amount of money’ without causing hyperinflation is a dream of every government because they need a lot of money for better infrastructural developments as well as for boosting the GDP of the country. Unfortunately, our present economic systems based on price mechanism cannot offer ‘the unlimited money’ owing to the inflation, which is an inevitable consequence of price mechanism. The new ‘Advanced Economic System’ offers unlimited money with fixed value in the economy by replacing the open market structure based on price mechanism with a regulated market system. In order to regulate the market, the easiest way is to control the money transactions taking place in the market because without money transactions no commerce is possible. Therefore, the Central Bank replaces the old monetary system using paper money with a new monetary system using digital money and regulates all transactions with its highly sophisticated closed network system. We know that the paper currency is the root cause of all crimes related to money since its transactions can be anonymous and untraceable. On the other hand, the transactions using digital money cannot be anonymous and untraceable, as all transactions need to be endorsed by a third party, usually a central bank. The Central Bank can control inflation promptly by fixing the prices / fairs / fees using its closed network system since no commerce are possible outside this network in the absence of physical money. In other words, the central bank, which controls the entire money transactions taking place in an economy using this advanced monetary system, can have many discretionary powers. It can stop all illegitimate transactions taking place in a nation; It can fix the prices/ fairs/ fees and thereby stop inflation; It can control the money flow in the economy; It can reduce the financial gap between the rich and the poor and above all it can generate unlimited money as credit. In the absence of physical cash, nobody, no institution can question the power of central bank because all money transactions are taking place only through the computer network system of the Central Bank. Despite the central bank has tremendous powers, it is harmless because it cannot take any policy decisions of its own except just to follow the prefixed norms. At the same time, no government can misuse the Central Bank since it is fully autonomous. The new ‘Advanced Economic System’ is the solution for all economic and social problems that man faces today in our society such as Poverty, Terrorism, Illicit drug sales and all crimes related to money. Xxxxxxx