Monetary Nationalism Framework
National control of money
The Monetary Nationalism Framework refers to the doctrine that a country's share of the world's money supply should not be left to market forces, but rather controlled by national governments. This framework is characterized by the use of national currencies, exchange rate manipulation, and the suppression of gold as a global currency. The framework is rooted in the idea that national governments should have control over their own monetary policy, rather than being subject to the discipline of a global gold standard.
- National governments should control their own monetary policy
- The value of a national currency should be determined by the government, rather than market forces
- Gold should be suppressed as a global currency, in favor of national currencies
- Establish national control over monetary policyNational governments should assert their control over monetary policy, rather than being subject to the discipline of a global gold standardPro tipThis can be achieved through the establishment of a central bank, which can implement monetary policy decisionsWarningNational control over monetary policy can lead to inflation, currency devaluation, and economic instability
- Manipulate exchange ratesNational governments can manipulate exchange rates to achieve their economic goals, such as increasing exports or reducing importsPro tipThis can be achieved through the use of currency intervention, tariffs, and other trade policiesWarningExchange rate manipulation can lead to trade wars, economic instability, and currency devaluation
- Suppress gold as a global currencyNational governments can suppress gold as a global currency, by restricting its use, or by devaluing their currency in terms of goldPro tipThis can be achieved through the use of gold price controls, or by restricting the use of gold in international tradeWarningSuppressing gold as a global currency can lead to economic instability, inflation, and currency devaluation
The US dollar was established as a reserve currency, and its value was pegged to gold. However, the US government began to print more money, and the resulting inflation led to a devaluation of the dollar
The British pound was also established as a reserve currency, and its value was pegged to gold. However, the British government began to print more money, and the resulting inflation led to a devaluation of the pound
The Monetary Nationalism Framework emerged in the aftermath of World War I, as countries sought to assert their independence and control over their own monetary policy. The framework was further solidified by the Treaty of Genoa in 1922, which established the US dollar and British pound as reserve currencies.