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Government does not need this ability, it just wants it.

by felipeko 9y ago

johnwheeler 9y ago
My point is Government doesn't even need to "want it". It has it.
KirinDave 9y ago
What does this mean? How does a government "need" or "not need" things?
- felipeko 9y ago
  There are things a government needs, like revenue source and public servants, to exist or do its job. Government does not need to have its own currency for exist or to do its job. It's debatable that government having the ability to mess with monetary policy is a good thing. It may be working in US at the moment (and it will be hard to measure if it is helping or not), but there have been a lot of countries economically ruined because of that.
  - KirinDave 9y ago
    > Government does not need to have it's own currency for exist or to do it's job. Please provide evidence for this. It seems like most successful governments disagree.
    - shawn-butler 9y ago
      A lot of successful governments use the euro, a currency which they neither own nor control?
      - mempko 9y ago
        The euro is also in crisis.... Just look at Greece and Spain. The euro is an experiment and we still have time to see if it works.
      - Retric 9y ago
        I think you underestimate the amount of control they have.
        shawn-butler 9y ago
        I do not underestimate the amount of control they have. Their share in the bank was was determined in 1998 on the basis of the states' population and GDP, and adjusted since. Please by all means do me a favor and educate me on the amount of control a country like Slovenia exerts on ECB monetary policy with its 0.3% capital allocation?
        Retric 9y ago
        Slovenia can abandon the Euro at any time. This power sit's on top of any other they gain being part of the collective. Countries use the Euro because it's useful for them to use the Euro, if it's stops being useful they drop it.
      - ravitation 9y ago
        All the members of the Eurozone do have a say in the governance of the ECB and therefore its monetary policy... In a comparable way to the oversight the federal government has in the running of the Fed...
taoistextremist 9y ago
Its ability to respond to economic crises becomes very diminished if it does not have this ability.
- felipeko 9y ago
  Its ability to create/enhance economic crises also becomes very diminished.
  - deleted 9y ago
    [deleted]
alexasmyths 9y ago
"Government does not need this ability," Extremely debatable, given the fact that every nation on planet earth basically uses monetary policy. A rational policy whereby currency is exchanged for other assets at a rate using benchmarks is preferable to a strict currency. A better economic policy might even allow almost anyone to exchange assets for currency. Then the market can decide how much is in circulation (though arguably that is already happening, just the levers are in the hands of a body, not a distributed group).
- felipeko 9y ago
  I don't think it is debatable considering we have had successful governments without it. Saying every country does it is not a good point, as it could be applied to slavery once upon a time. But I agree that it's debatable if it is good. Being good and necessary are two different things though.
- joshlemer 9y ago
  >every nation on planet earth basically uses monetary policy Not really true, if you consider all the countries that use the currency of an other. (https://en.wikipedia.org/wiki/Currency_substitution https://en.wikipedia.org/wiki/Currency_substitution)

Government does not need this ability, it just wants it.

johnwheeler 9y ago

My point is Government doesn't even need to "want it". It has it.

KirinDave 9y ago

What does this mean? How does a government "need" or "not need" things?

felipeko 9y ago
There are things a government needs, like revenue source and public servants, to exist or do its job. Government does not need to have its own currency for exist or to do its job. It's debatable that government having the ability to mess with monetary policy is a good thing. It may be working in US at the moment (and it will be hard to measure if it is helping or not), but there have been a lot of countries economically ruined because of that.
- KirinDave 9y ago
  > Government does not need to have it's own currency for exist or to do it's job. Please provide evidence for this. It seems like most successful governments disagree.
  - shawn-butler 9y ago
    A lot of successful governments use the euro, a currency which they neither own nor control?
    - mempko 9y ago
      The euro is also in crisis.... Just look at Greece and Spain. The euro is an experiment and we still have time to see if it works.
    - Retric 9y ago
      I think you underestimate the amount of control they have.
      - shawn-butler 9y ago
        I do not underestimate the amount of control they have. Their share in the bank was was determined in 1998 on the basis of the states' population and GDP, and adjusted since. Please by all means do me a favor and educate me on the amount of control a country like Slovenia exerts on ECB monetary policy with its 0.3% capital allocation?
        Retric 9y ago
        Slovenia can abandon the Euro at any time. This power sit's on top of any other they gain being part of the collective. Countries use the Euro because it's useful for them to use the Euro, if it's stops being useful they drop it.
    - ravitation 9y ago
      All the members of the Eurozone do have a say in the governance of the ECB and therefore its monetary policy... In a comparable way to the oversight the federal government has in the running of the Fed...

taoistextremist 9y ago

Its ability to respond to economic crises becomes very diminished if it does not have this ability.

felipeko 9y ago
Its ability to create/enhance economic crises also becomes very diminished.
- deleted 9y ago
  [deleted]

alexasmyths 9y ago

"Government does not need this ability," Extremely debatable, given the fact that every nation on planet earth basically uses monetary policy. A rational policy whereby currency is exchanged for other assets at a rate using benchmarks is preferable to a strict currency. A better economic policy might even allow almost anyone to exchange assets for currency. Then the market can decide how much is in circulation (though arguably that is already happening, just the levers are in the hands of a body, not a distributed group).

felipeko 9y ago
I don't think it is debatable considering we have had successful governments without it. Saying every country does it is not a good point, as it could be applied to slavery once upon a time. But I agree that it's debatable if it is good. Being good and necessary are two different things though.
joshlemer 9y ago
>every nation on planet earth basically uses monetary policy Not really true, if you consider all the countries that use the currency of an other. (https://en.wikipedia.org/wiki/Currency_substitution https://en.wikipedia.org/wiki/Currency_substitution)