A BLUEPRINT FOR CREATING A "NON-CONVENTIONAL UNCONVENTIONAL" MONETARY SYSTEM AND ARRANGEMENT

Tohid Atashbar
Additional contact information
Tohid Atashbar: The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise

No 141, Studies in Applied Economics from The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise

Abstract: Monetary policies like QE that were once seen as unconventional are now prevalent and almost “conventional”. This study tries to answer the question that in an ultimate crisis scenario, where available conventional and currently “conventional unconventional” tools are exhausted, what would be a Middle East-style “non-conventional unconventional” solution to such a crisis, given that the pseudo-magic unconventional concepts like MMT, which have been on the rise in recent times, would be deemed counter-productive in such circumstances? Based on the “3-No” or “Triple freedom” theorem which is the product of a comprehensive study of the monetary theories in the region, we propose a three-part solution called 3Fs (FFF): 1- “Full-reserve banking” on the system level, which means “No to (freedom from) credit creation from thin air in the banking system,'' 2- “Free Banking on Currency Board” or “Currency Board” on the instrument level, which means “No to (freedom from) thin air in the value of money” and 3- “Free from Subsidy” arrangement on the contract level through “Profit and Loss (and Risk) Sharing or PL(R)S” mechanism, which—by eliminating the risk and gain subsidies—means “No to (freedom from) gain from thin air on the contract level”.

Keywords: Unconventional theories; non-conventional unconventional models; monetary economics; Middle-Eastern schools (search for similar items in EconPapers)
Pages: 33 pages
Date: 2019-11
New Economics Papers: this item is included in nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://sites.krieger.jhu.edu/iae/files/2019/11/A- ... -and-Arrangement.pdf Full text (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:jhisae:0141

Access Statistics for this paper

More papers in Studies in Applied Economics from The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise Contact information at EDIRC.
Bibliographic data for series maintained by Steve H. Hanke ().