GLOBAL MONETARY SYSTEM IN THE CONTEXT OF REFORM: SUPRANATIONAL CURRENCY GES
DOI:
https://doi.org/10.15407/economyukr.2024.01.066Keywords:
world financial architecture; global monetary system; supranational currency GESAbstract
The current world finance crisis prompts the search for a qualitatively new international monetary system that would bring the total money supply into line with the total mass of real assets value in the world, that is, establish global value-monetary parity on the basis of a strong supranational currency as a means of payment and reserve. It is about reformatting the global monetary system on the material and value basis of the real economy by creating a value-adequate international monetary unit, which should rid world finance of the ballast of materially unsecured money supply and facilitate international settlements in trade, lending, investment, etc.
In view of this, the author reveals his vision of creating a supranational monetary unit GES (Grain Equivalent Standard) based on the weighted average market value of the International Grain Council (IGC) grain standard according to the algorithm: 1 ton of IGC grain → exchange value of IGC grain (in USD) → monetary unit 1 GES. The currency formed in this way acquires a value scale of prices, that is, it acquires a nominal-value link to a certain value indicator of a material good taken as a standard, which is IGC grain: 1 GES = cost of 1 ton of IGC grain. As a result, the global financial system, based on the material and value foundations of the real economy, optimizes the money supply in terms of value and acquires a perfect toolkit for calculating the value parameters (measures of value) of material goods created by labor, which guarantees the high-quality performance of financial and settlement operations of exchange, payments, accumulation in international economic relations. The advantage of such a currency system is the stability of the monetary unit in terms of its purchasing power in the long run, since the value of the standard IGC grain, on which the GES currency is based, is in line with the long-term trend of the movement in the value of the bulk of commodity products, which is virtually the most important guarantee of the stability of the world financial architecture.
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