ERC Connect funding: A new monetary model for th EMU

Project Details

Description

My fundamental research would in the present phase highly benefit from a phase of further deepening, in which, in particular, the economic and legal feasibility of the proposals to reform the monetary system that I have formulated in the past, would be subjected to further research and examination in more detail. This requires thorough research, which is the reason for this current application, with a view to a proper pre- paration of an ERC application on this.
As far as concerns the above-mentioned economic aspects, the assessment of the reforms I have proposed
in the past, requires further economic (and econometric) research. The “first dimension” of my own proposals, namely the creation of a single, global currency has already been the subject of profound economic research in the past. From this, it appears that such a system is indeed feasible, as the installment of such a system is, most probably, less a problem of economics than of political choice.13
The “second dimension” of my proposals, namely a system of money creation on behalf of states (and international and supranational public institutions) based upon non-repayable allocations, combined with a system of money creation on behalf of private persons based upon a diversified (interest) approach, has not yet been subjected to profound economic research (as this part of my proposals are to a large extent entirely
new). Such a research should ideally be undertaken in narrow collaboration with (a) researcher-economist(s),
which would be possible in the context of an ERC grant.
The same applies to the implementation of these research proposals within a European context. In particular, it should be further researched whether the implementation of the reform proposals that I have worked out so far, could be phased, based upon an approach where the EU would take the lead. In any case, the EU itself would highly benefit from this research, to the extent that the past two major crises – i.e. the severe financial crisis of 2008, and its aftermath, and the Covid-19 crisis of 2020-2021 – have both shown that the current (monetary and fiscal policy) responses to such a crisis have been making things worse, which is in part due to the fact that the capitalist monetary and fiscal policy systems do not provide a sound method of dealing with crises, instead causing a vicious circle of debt build-up on the part of member states far beyond the parameters of EMU logic itself – with currently the average of the debt-to-GDP ratio being 50% above the European standard, which shows to what extent the current system is not able to cope with crises, most likely to be followed by an (ever-longer) period of EU austerity to force states to get their public debt and government finances back within European standards.
Past experiences have, however, shown that such austerity goes at the expense of state spending, which in turn undermines public services and social security systems - ergo the components of the welfare state – even more.
All of this indicates how the implementation of economic neoliberalism, esp. in the context of monetary and fiscal policies, keeps undermining the welfare state. And it has been precisely because of this austerity, as
applied in the aftermath of the financial crisis of 2008, that many EU member states were unable to respond
adequately to the recent outbreak of Covid-19 (with, after years of cut-backs and privatization operations in the healthcare sector, e.g., a shortage of ICU hospital beds, a shortage of sufficient (qualified) staff in hospitals and rest homes, an insufficient stock of protective equipment, a shortage of qualified staff in nursing
homes ...).
The lesson from all of this is, in essence, that any past crisis further undermines further resilience against a subsequent crisis, at least with the continuation of neoliberal monetary and fiscal policy.
In the models that I have developed in my previous research, an effective answer could be offered to these shortcomings. An ERC grant - and the preparation for this during a preparatory sabbatical period - would
allow me to investigate the feasibility of these models both from an economic angle and, already, at a
European level. The idea could then be that the EU would take the lead in the introduction of such a new monetary system, in order to convince other countries and monetary unions or other forms of monetary, re- gional cooperation structures, at a later stage to follow such an European example.
AcronymOZR3814
StatusActive
Effective start/end date1/12/2130/05/22

Flemish discipline codes

  • Law not elsewhere classified

Keywords

  • Monetary system