But given that money is a unit of account—a measuring stick for the real economy, that is a very bad thing. - if the real cost of money creation equals the value of money then that is a lot of resources poured into a metaphorical hole in the ground—over time—this makes private currency strictly inferior to a monopoly fiat currency. There have been worse ideas, but it is a remarkably short list.
This means that the only actor who can do any real net good with the power of money creation is the government. - Kumhofs idea might be a better system than what we are currently doing, private currencies—of any type—logically cannot be.
And before anyone brings it up - a private actor with a monopoly on currency creation is not very private. That level of power defacto makes you the government.
But given that money is a unit of account—a measuring stick for the real economy, that is a very bad thing. - if the real cost of money creation equals the value of money then that is a lot of resources poured into a metaphorical hole in the ground—over time—this makes private currency strictly inferior to a monopoly fiat currency. There have been worse ideas, but it is a remarkably short list.
This means that the only actor who can do any real net good with the power of money creation is the government. - Kumhofs idea might be a better system than what we are currently doing, private currencies—of any type—logically cannot be.
And before anyone brings it up - a private actor with a monopoly on currency creation is not very private. That level of power defacto makes you the government.