Towards a New International Monetary Order (eBook)

Koen Byttebier (Autor)

eBook Download: PDF

2017 | 1st ed. 2017
XVII, 501 Seiten
Springer International Publishing (Verlag)
978-3-319-52518-1 (ISBN)

Infos

This book presents a thorough and critical evaluation of the monetary and financial system prevalent in Western economies. Further, it seeks to explain why this system so often leads to financial crises and why they have been dealt with unsatisfactorily in the past. 

In order to provide answers to these questions, the book investigates the monetary and financial system from a multidisciplinary perspective, with a strong focus on the ethical value choices which throughout history have shaped the monetary and financial legal system. In the closing chapters, the book also advances a detailed proposal for a New Global Monetary Order, one based on altruism, as an alternative to the neoliberal values dominant today.

Koen Byttebier, Vrije Universiteit Brussels

Inhalt

Preface 7
Contents 10
List of Further Illustrations 14
List of Tables 16
Chapter 1: Introduction 17
References 27
Chapter 2: On the Conventional Nature of Money 29
2.1 Background 29
2.2 The Essentially Conventional Nature of (the) Money (System) 32
2.2.1 Money as a Conventional Instrument Since Its Very Creation 32
2.2.2 Origins of Coin-Based Monetary Systems 34
2.2.3 Money Within Modern States 36
2.3 Evolution of the Conventional Nature of the Monetary System in the Middle Ages 37
2.3.1 The Early Medieval Banking System 37
2.3.1.1 Predecessors of the Medieval Banking System 37
2.3.1.2 The Medieval Mechanism of Coin Deposits 39
2.3.1.3 The Medieval Mechanism of Lending Coin Money 41
2.3.2 The Medieval Evolution Towards Privately Issued Paper Money 42
2.3.3 Medieval Private Paper Money Creation Based on Lending 45
2.3.4 Synthesis: Status of the Monetary System at the End of the Middle Ages 47
2.3.5 Evaluation of the (Late) Medieval Money Creation 48
2.3.5.1 Advantages of the New Money Creation System 48
2.3.5.2 Precarious Nature of the New Money Creation System 50
2.3.5.3 (Preliminary) Ethical Perception of the New System of Money Creation 52
2.4 Genesis of the Central Banking System as a Reaction to Financial Crises 53
2.4.1 Banking Crises as Triggers for Government Intervention 53
2.4.2 Genesis of (an Early) Central Banking System 54
2.4.3 Genesis of a Central Bank Policy 55
2.4.4 Impact of the Aforementioned Evolutions on the Monetary System 57
2.4.5 Further Crystallization of the Monetary System in the Nineteenth Century 59
2.5 Scriptural Money as the New Privately Created Money 61
2.5.1 Background 61
2.5.2 Deposits and Money Substitution 61
2.5.3 Creating New Scriptural Money Through Commercial Bank Lending 62
2.6 Further Aspects of the Modern Banking and Money System 65
2.6.1 General Characteristics of the Modern Banking System 65
2.6.2 The Continuous Conventional Nature of Modern Forms of Money 68
2.6.3 Credit as Money 69
2.6.4 Further Monetary Issues Within a Credit Economy 73
2.7 The Monetary and Banking System in a Globalized Context 77
2.7.1 Interplay Between International Trade and International Payment Transactions 77
2.7.2 Legal Premises and Systems for Smooth International Payments 85
2.7.3 Disruptions Occurring Within International Payment Transactions 86
2.8 Preliminary Conclusion 91
References 92
Chapter 3: The Debate About the Ethics of Money Pursuit 97
3.1 General Goal of This Chapter 97
3.2 Functions of Money 97
3.2.1 Classic Functions of Money in General 97
3.2.2 Money as a System of Unlimited Wealth Accumulation and Its Interaction with Self-centered and Altruistic Thinking: A Gen... 101
3.3 Historical Voices Against the Unlimited Accumulation of Wealth 106
3.3.1 Scope 106
3.3.2 The Fundamental Incompatibility of (Institutionalized) Saving and Credit with Certain Philosophical and Religious Doctri... 107
3.3.2.1 Plato 107
3.3.2.2 The Religious-Ethical Teachings of Jesus Christ 110
3.3.2.2.1 Jesus Christ´s Radical Rejection of Fortune Gathering Behaviour 110
Further Illustration 3.1: The High Price of Materialism (Tim Kasser) 112
Further Illustration 3.2: Health Care Within the Christian Tradition 117
3.3.2.2.2 Attitude Towards Money Gathering in the Early Christian Societies 120
3.3.2.2.3 The Allegorical Marriage Between Francis of Assisi and Lady Poverty 123
Further Illustration 3.3: Brother Sun, Sister Moon (Franco Zeffirelli) 127
3.3.2.2.4 The Waning Influence of Jesus Christ´s Radical Teachings About Wealth Accumulation in Later Christian Societies 129
3.3.3 The Middle Ages Clerical Interest Debate 131
3.3.3.1 The Weakening of Christian Teaching Towards the So-Called Interest Debate 131
3.3.3.2 Main Sources of Inspiration in the Clerical Interest Debate 132
3.3.3.2.1 Sources from Classical Antiquity 132
3.3.3.2.1.1 Scope 132
3.3.3.2.1.2 Charging Interest in Ancient Societies 133
3.3.3.2.1.3 The Teachings of Aristotle 133
3.3.3.2.1.4 The Legal Approach to Interest Charging in Antiquity 136
3.3.3.2.2 Biblical Sources for the Prohibition of Clerical Interest 137
3.3.3.3 Formal Announcement of the Clerical Interest Prohibition by the Church 139
3.3.3.3.1 Early Advocates of the Clerical Interest Prohibition 139
3.3.3.3.2 The Decision-Making Process Leading to a Formal Ban on Interest Charging 140
3.3.3.4 Further Theoretical Foundation of the Clerical Interest Prohibition 142
3.3.3.5 Further Development of the Ecclesiastical Ban on Charging Interest and First Signs of Its Phasing-Out 143
Further Illustration 3.4: The Jewish Community in Middle Age´s Prague 145
3.3.3.6 End of the Ecclesiastical Prohibition of Interest 147
3.3.3.6.1 Further Challenging the Ecclesiastical Prohibition of Interest in Practice 147
3.3.3.6.2 Challenging the Ecclesiastical Prohibition of Interest in Rising Protestantism 147
3.3.3.6.3 Erosion of the Religious Prohibition of Interest in the Official Catholic Doctrine 151
3.3.3.6.4 Further Erosion of the Ecclesiastical Interest Prohibition in Modern Times 151
Further Illustration 3.5: Further Development of Interest Regulation in Belgium 152
3.3.3.7 The Last Convulsions of the Medieval Debate on Charging Interest 153
3.3.3.7.1 Further Evolution of the Catholic Church Doctrine During the Nineteenth Century and the First Half of the Twentieth ... 153
3.3.3.7.2 Outside of the Church 158
3.3.3.8 Contemporary Lessons from the (Ecclesiastical) Interest Debate 159
3.4 Doctrines in Favour of Uncontrolled Wealth Accumulation 161
3.4.1 The Decline of Altruism as an Underlying Ideal Within Economic Doctrines 161
3.4.2 Ideological Foundation of the Selfish Economy 162
3.4.2.1 Economic Liberalism 162
3.4.2.1.1 Ethics of Liberal and Neo-liberal Thinking in General 162
Further Illustration 3.6: Tested Recipes for Baking the (Neo)Liberal Pie 164
3.4.2.1.2 The Writings of Adam Smith, David Ricardo, Thomas Malthus and John Stuart Mill 169
3.4.2.1.2.1 Inverse Value Perception as a Leading Principle in Adam Smith´s Writings 169
3.4.2.1.2.2 Basic Dogmas of Adam Smith on the Issue of Wealth Accumulation as Stated in Certain of His Works 172
3.4.2.1.2.3 Evaluation of the Legacy of Adam Smith 174
Further Illustration 3.7: Alien Et Seq 181
3.4.2.1.2.4 Certain Other Liberal Economists 183
3.4.2.1.2.5 Further Impact of the School of ``Economic Liberalism´´ 185
Further Illustration 3.8: Smith Versus Dickens, Wilde, Stowe and Douwes Dekker 186
3.4.2.2 Corrections to and a Critical Reflection on Capitalism After WW II 189
3.4.2.2.1 Legislation Shaping the Welfare State 189
3.4.2.2.2 Critical Voices of the 1970s 192
3.4.2.3 Economic Neo-liberalism 193
3.4.2.3.1 The ``Philosophy´´ of Economic Neo-liberalism 193
3.4.2.3.2 The Implementation of Neo-liberal Philosophy in Practice 196
3.4.3 Further Characteristics of the ``Selfish Economies´´ Based on (Neo) Liberal Doctrines 200
3.4.3.1 The Sacrifice of All Other Values to the Unbridled Pursuit of Money 200
3.4.3.1.1 Depreciation of Labour 200
3.4.3.1.1.1 The Facts 200
Further Illustration 3.9: Child Labor and Child Slavery in the Twenty-First Century 207
3.4.3.1.1.2 The Ethical Debate 208
3.4.3.1.1.3 Illustration: Remuneration Practices of CEO´s and the Likes 211
Further Illustration 3.10: Capitalist Practices of Certain International Law Firms 213
3.4.3.1.2 The Sacrifice of Other Values Than Labor to the Pursuit of Profits 215
Further Illustration 3.11: The Global Climate Policy-A Story of Many Words and Few Deeds 217
3.4.3.1.3 Provisional Conclusion 221
3.4.3.2 A Further Look at Some (Negative) Aspects of Capitalism in a Globalized Context 223
Further Illustration 3.12: The ``Hunger Paradox´´ 224
Further Illustration 3.13: Cocoa Versus Chocolate 229
3.4.3.3 Grim Prognoses for the Future 232
Further Illustration 3.14: Deindustrialization in Belgium 233
3.4.4 The Development of the Financial System Under the Doctrine of Economic Neo-liberalism 235
3.4.5 The Fate of Money in a Credit Economy 238
3.4.6 The Issue of Government Financing 247
Further Illustration 3.15: The Growth of American Government Debt in the Reagan Era and Beyond 264
Further Illustration 3.16: Fiscal Creativity from John C. Malone 267
Further Illustration 3.17: Of (Highly) Profitable Companies Who Spend More on CEO-Fees Than on Taxes 268
Further Illustration 3.18: Fiscal Creativity Set Up with the Help of Luxembourg to the Benefit of (Amongst Others) the Belgian... 269
Further Illustration 3.19: Tax Avoidance by Ikea and Its Founding Father 274
Further Illustration 3.20: The Panama Papers 276
Further Illustration 3.21: Belgian Government Finances: A Story of Everlasting Remediation Amounting to Nothing 282
3.4.7 The Financial Crisis Since 2008 284
Further Illustration 3.22: Reward Policies in Banking as a Striking Example of the (Neo)Smithian Unbridled Pursuit of Money 290
Further Illustration 3.23: Correlation Between the Neo Liberal Genius Principle and the Financial Problems of (the ``Former´´)... 292
Further Illustration 3.24: The Return of the Bonus Culture 294
3.4.8 Social Economic Inequality Resulting from Economic Neo-liberalism 296
3.4.8.1 Introduction 296
3.4.8.2 A (First) Anthology from Research on the Gap Between the Poor and the Rich 300
Further Illustration 3.25: Multi Billionaires 305
Further Illustration 3.26: (Increasing) Poverty in Belgium 309
3.4.8.3 Some Consequences of the Growing Inequalities 309
3.4.8.4 A (Second) Anthology of Certain Illustrations of the Gaps Between the Poor and the Rich 313
3.4.8.5 Conclusions on the Future of Socioeconomic Relations Under Economic Neo-liberalism 315
3.5 The Need to Extrapolate the Reflection on the Selfish Economy to Other Fields of Science and Society 316
3.6 The Need for (Real) Change 319
3.6.1 The Need for a New Ethical Foundation of the Socioeconomic Order 319
3.6.2 Further Interpretation of the Need for a New Ethic Substructure of the Socioeconomic Order in the Context of Certain Hum... 321
3.6.2.1 Scope 321
3.6.2.2 Aristotle 321
3.6.2.3 Certain Enlightened Philosophers from the Era of the French Revolution 323
3.6.2.4 (Modern) Humanism 326
3.6.2.5 Religion 327
3.6.2.5.1 General Perspective of Judaism and Christianity 327
3.6.2.5.2 Catholicism 327
3.6.2.5.3 Buddhism 334
3.6.2.5.4 Evaluation 336
3.6.3 Some Insights Derived from Biology 337
3.6.4 Some Further Contemporary Arguments for More Altruism in Socioeconomic Relations 342
3.6.4.1 Context 342
3.6.4.2 French (Moral)philosophers 342
3.6.4.2.1 Context 342
3.6.4.2.2 Emmanuel Levinas 343
3.6.4.3 Several Further Voices Calling for More Justice on a Socioeconomic Level 346
3.6.4.4 The Call for More Altruism by Certain International Institutions 348
3.6.4.5 Conclusion 349
3.7 Guidelines for a More Altruistic Monetary System (Based Upon the Insights Derived from the Chap. 2 and This Chapter of Thi... 350
References 353
Chapter 4: Building Stones for a New Monetary World Order 369
4.1 Introduction: Towards a New Monetary World Order Based on Five Pillars 369
4.2 Pillar I. A Global Monetary System 371
4.3 Pillar II. A Monetary System Based on ``Altruistic´´ Objectives 374
4.4 Summary of Pillars I and II 379
4.5 Pillar III. Money as a ``Public Good´´: Towards a Monetary System Excluding Private Money Creation 379
4.5.1 Key Aspects of the Currently Prevailing System of (Private) Money Creation 379
Further Illustration 4.1: Available Amount of Money Related to the Capital of the ``Multi Billionaires´´ 384
4.5.2 Putting an End to Private Money Creation 386
4.5.2.1 General Motivation for the Proposal of Ending Private Money Creation 386
4.5.2.2 Further Motivation of the Proposal to End Private Money Creation 390
4.5.2.3 General Outlook of the ``Third Pillar´´ of the New Monetary World Order 393
4.6 Pillar IV. A Differentiated Price Setting for Newly Created Money 396
4.7 Pillar V. Full Control of the Monetary Authority (ies) 399
4.7.1 Basic Principle of the Fifth Pillar 399
4.7.2 Money Creation for the Benefit of the Governments of the Countries Participating in the New Monetary World Order 399
4.7.2.1 Context 399
4.7.2.2 Towards a New Model of Government Financing (Based on a System of World-Wide Money Creation) 401
4.7.2.2.1 Principle of (International) Money Creation for the Benefit of National Authorities 401
4.7.2.2.1.1 General Principle 401
4.7.2.2.1.2 Abolition of the Possibility of Tax and Other Charges and of Debt Financing 401
4.7.2.2.1.3 Allocations by the NMWI as an Exclusive New Source of Financing Governments 404
4.7.2.2.2 Need for a Profound Review (and Global Leveling) of the Role of (National) Governments 408
4.7.2.2.3 Parameters for (International) Money Creation on Behalf of the National Governments of the Participating Countries 409
4.7.2.2.4 Practical Working Method of (International) Money Creation for the Benefit of National Authorities 411
4.7.2.3 Elements of Further Appeal of the Proposed System of (International) Money Creation on Behalf of the National Governme... 414
4.7.2.3.1 A Simplified Government Financing 414
4.7.2.3.2 Further Reflections on a More Just Fiscal System 416
4.7.2.3.2.1 Building Stones for a New and Just Fiscal System 416
4.7.2.3.2.2 Basic Content of the Here Proposed New and More Just Global Tax System 418
4.7.2.3.2.3 A Transaction Tax on Certain Expenditures for Luxurious and (Certain Other) ``Nonessential Goods´´ 418
4.7.2.3.2.4 Income Tax for Individuals Already in Possession of Great Wealth 419
4.7.2.3.2.5 Tax on ``Business Profits´´ 425
4.7.2.3.2.6 Allocation of the Collected Taxes 427
4.7.2.4 Towards a Global Social Care System 428
4.7.2.4.1 Background 428
4.7.2.4.2 Plea for a World-Wide Synchronized Social Care System 429
4.7.2.4.3 The Policy Question of a Fixed Basic Income 432
4.7.2.4.4 Towards a Global Alignment of the Rules and Regulations Protecting Labor 434
4.7.2.5 Measures to be Thought of During a Transition Period 434
4.7.3 Money Creation on Behalf of the Private Sectors of the Countries Participating to the New Monetary World Order 440
4.7.3.1 Principle 440
4.7.3.2 Levels of Money Creation on Behalf of the Private Sector 442
4.7.3.2.1 General Overview 442
4.7.3.2.2 Credit Lending to/Money Creation for the Benefit of Private Individuals (and Households) for Basic Needs of Life 443
4.7.3.2.3 Credit Lending to/Money Creation for the Benefit of Private Individuals for the Start-Up of a (New) Professional Act... 444
4.7.3.2.4 Credit Lending to/Money Creation for the Benefit of the Nonprofit-Sector 450
4.7.3.2.5 Credit Lending to/Money Creation for the Benefit of Established Businesses 451
References 453
Chapter 5: Some Further Institutional and Other Practical Aspects of the Organization of the New Monetary World Order 459
5.1 Institutional Organization 459
5.1.1 General 459
5.1.2 Supranational Level of Organization of the NMWI 460
5.1.2.1 Classification of the NMWI into Departments 460
5.1.2.2 Working Method of the Different Departments of the NMWI 461
5.1.2.2.1 Operation of the Department for Public Money Creation 461
5.1.2.2.2 Operation of the Department for Private Money Creation 462
5.1.3 National Organization Level 464
5.1.4 Financing the NGSCB 465
5.1.5 Composition of the Governing and Managing Bodies of the NGSCB 466
5.1.5.1 Organizational Aspects 466
5.1.5.2 A New Ethics of Filling Positions and Mandates 467
5.2 Further Elements of Money Creation at the Proposed Levels 469
5.2.1 Overview 469
5.2.2 Creation of Money for Financing the Proper Operation of the NMWI and the NGSCB 470
5.2.3 Money Creation for the Benefit of the National Governments of the Countries Participating in the NMWO 471
5.2.4 Money Creation for the Benefit of the Private Sector 475
5.2.4.1 Task Division Between the NMWI and the National Central Banks Participating in the NGSCB 475
5.2.4.2 Credit Lending/Money Creation for the Benefit of Private Individuals and Families 476
5.2.4.2.1 Credit Lending/Money Creation for the Benefit of Private Individuals (and Families) for Basic Needs of Life 476
5.2.4.2.2 Credit Lending/Money Creation in Order to Ensure Basic Access to a Professional Activity 477
5.2.4.2.3 Further Characteristics of Credits for the Benefit of Private Individuals and Families 477
5.2.4.3 Credit lending/Money Creation for the Benefit of the Nonprofit-Sector 482
5.2.4.4 Credit lending/Money Creation for the Benefit of the Business Sector (in a Broad Sense of the Word) 485
5.3 Collection of Deposits and Organization of the Basic Payments 488
5.3.1 Deposit Services as a Task of the New National Central Banks 488
5.3.2 Further Technical Details About the Deposit Task of the NGSCB 490
5.3.3 Parenthesis: Physical Appearance of the New Global Currency 492
5.4 Further Metamorphosis of the Private Banking Sector 495
5.4.1 Avoidance of Interference with the Tasks of the NMWI/NGSCB 495
5.4.2 Some Further Reflections on the Appearance of the Private Banking System Operating Under the NMWO 497
5.4.2.1 General 497
5.4.2.2 Consequences in the Field of the Origin of the Means of Financing of Private Banks 497
5.4.2.3 Consequences as Regards the Spending and Investment Behavior of Private Banks and as Regards the Regulatory Framework ... 498
References 502
Chapter 6: Concluding Reflections 504
References 516

Produkt-Details

• Erscheint lt. Verlag: 25.5.2017
• Reihe/Serie: Economic and Financial Law & Policy – Shifting Insights & Values
• Reihe/Serie: Economic and Financial Law & Policy – Shifting Insights & Values
• Zusatzinfo: XVII, 501 p.
• Verlagsort: Cham
• Sprache: englisch
• Themenwelt: Recht / Steuern ► Allgemeines / Lexika
• Themenwelt: Recht / Steuern ► EU / Internationales Recht
• Themenwelt: Recht / Steuern ► Steuern / Steuerrecht
• Themenwelt: Recht / Steuern ► Wirtschaftsrecht ► Bank- und Kapitalmarktrecht
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Unternehmensführung / Management
• Themenwelt: Wirtschaft ► Volkswirtschaftslehre ► Makroökonomie
• Schlagworte: Banking crisis and its consequences • Banking System • Ethical values of the monetary and financial systems • Monetary and financial systems • Remedies for the financial crisis
• ISBN-10: 3-319-52518-2 / 3319525182
• ISBN-13: 978-3-319-52518-1 / 9783319525181