Property360Digest e-magazine Issue # 9 - 2021
Professor Smith also suggested the directions which should be taken in reforming contemporary central banking :
1 . Bind monetary authorities with an explicit rule . Hold them accountable and have enforcement mechanisms ( including bonuses and even removal from office for meeting or failing to meet targets ). A Nominal Gross Domestic Product ( NGDP ) targeting rule would be preferred over an inflation targeting rule .
2 . Make property rights a fundamental right of citizens , not a pejorative of central bankers by protecting it along with other fundamental rights in a constitution .
3 . Forbid the central bank from engaging in mission creep . Prohibit the adoption of additional formal or informal goals ( such as critical race theory , the environment , inequality , international trade , etc .) The sole purpose of a central bank should be delivering stable and predictable money .
“ The suggestions proposed during the webinar – concluded Dr Ferlito – need to be taken into account within the Malaysian context , where we experienced the wide and arbitrary role in fiscal policy played by the central bank . The risk we are facing without these reforms is to encounter , sooner than later , a malinvestment boom and bust crisis fueled by easy money , similar to the Great Recession experienced in the West in 2007-2008 ”.
For media enquiries : T : + 60-192394148 Email : carmelo . ferlito @ gmail . com –
centerformarketeducation @ gmail . com .
The Center for Market Education ( CME ) is a boutique think-tank based in Kuala Lumpur , Malaysia . As an academic and educational institution , CME aims to promote a more pluralistic and multidisciplinary approach to economics and to spread the knowledge of a sounder economics , grounded in the understanding of market forces . In order to do so , CME is not only involved in academic initiatives , but it organizes seminars , webinars and tailor-made economics classes for students , journalists , businesspeople and professionals who wish to better understand the relevance of economics for their daily lives and activities . Economics matters and needs to be presented in a fashion in which the link with reality is clearly visible . In this sense , we look not only at theoretical economics but also at policy making , with an emphasis on the unintended consequences generated by political actions
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