Eurotik moneta propiora (3)

Hasteko, ikus Eurotik moneta propiora (1)¹ eta Eurotik moneta propiora (2)².

---

(Oraingo honetan euro eta lira erabiliko dira, eredu gisa. Greziarako, liraren ordez, jarri drakma.)

---

Warren Mosler:

---

iv) Chianciano presentation³ (2014an)

---

Fom Euro to Lira

All tax liabilities become payable in lira

All Italian Govt. Employees get paid in lira

The compensation redenomination is 1:1

The govt. does not fix a lira exchange rate

---

Bank loans and Deposits

Bank deposits and loans remain in euro

Borrowers and depositors have the option to

convert at market prices

All lira bank deposits fully insured by govt

---

Bank lending

Bank lending only in lira

Bank lending limited to public purpose

Financial assets not acceptable collateral

Lending by credit analysis, not market prices

---

Bank (lira) liquidiry

Continuous, unlimited liquidity from the BOI

Unlimited govt. deposit insurance

Interbank lending prohibited

---

Additional proposals

Govt. contracts renegotiated to lira

Permanent 0 rate policy

No issuance of BTP or CCT

Suspend VAT to relax the fiscal balance

BOI funds a transition job for anyone willing

and able to work

---

Dynamics of the lira

Strong lira from taxation without deposit

conversion

This allows the govt. to purchase euro as

needed to meet prior obligations for initial

stability

---

Fiscal policy

The ‘right size’ govt. is politically determined

to meet real public service needs

Taxation is subsequently adjusted targeting

the total participants in the transition job at

3% of the labor force

The trade balance is allowed to adjust to that

of full employment conditions

---

Caveats

Converting bank deposits carries the risk

currency depreciation and inflation

A positive interest rate policy carries the risk

of currency depreciation and inflation

Banks regulation must tell banks what they

can do, and not what they can’t do.

---

(Segituko du)

---