Money, It Makes the World Go Round

By Alexander Graham

In countries throughout the world, there is talk of merging fiscal policies and monetary elements. It hasn’t hit the US yet but many economists feel that it could soon move our way. Many economists in foreign countries such as England and France are afraid of what could happen and are trying to prevent it. But honestly is it such a bad thing. Many people argue that if the merger goes through it will put political power in the hands of banks, and regulation of the money systems will fall also upon the politicians. This doesn’t make much sense as the political power is already very tight in the political party as is but how could a merger end up trading that power anyway, it just doesn’t make any sense, also that politicians would handle money regulations is ridiculous. In as far as a central bank is genuinely independent; politicians do not influence Monetary Policy Committee type committees. Thus there is equally little reason to suppose they would influence the sort of Monetary Policy Committee type committee advocated by Positive Money.

The Governor of the Bank in England, Mervyn King said in his speech that to combine fiscal policy and monetary systems will end up being close if not the same thing as himself standing in the streets handing out 50 pound notes, in the end if it doesn’t accomplish the goal, would prove to be impossible to reverse. That speaking this must mean that the merger would also be impossible to reverse but how difficult would it have been really to reverse such a merger. Cutting off the opportunities of such companies should reverse any effects that it has upon the system.  But what seems to be most confusing is that it will be assumed that because two areas of the government are becoming one it will force the two workers of each department to work as one, but people tend to not do more work than they have to and so assuming that they will do work for the other department is a little odd to begin with. I personally feel that citizens feel the need to freak out about something so even if there is nothing, they can and will find something to “freak” out about.  So since the “freak” out mode is small for the time being, many people have found that this possible action that is happening in ENGLAND may be perfect for the job.

Anyway, this is a tiny blip on our radar. It is not something that should affect us at all and most politicians and economists believe that we should ignore it. It isn’t guaranteed to occur even in England so the odds of it occurring in America are almost nonexistent. But as a final word, is it really a bad thing to allow this to occur?