Jul 11, 2019 in Exploratory

Privatizing the U.S. Money Supply

Money supply is the major economic function of the central governments across the world. In the world leading economies such as that of the United States of America, United Kingdom, and Germany, central governments are charged with the responsibility of determining and further control the total amount of money that circulates in their respective economies at any given time. Considering the sensitivity of this economic function, there is a dire need to privatize Money Supply so as to safeguard the financial institutions against the possible odds arising from undesirable political influence of the ruling elites.

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Privatization of the Money Supply in the United States appears to be one of the positive steps towards spurring an economic growth, achieving effective financial modeling and forecasting, as well as being an U.S tool of dominating global economy.  Nevertheless, complete privatization of the Money Supply in the U.S would not be possible though. Even though privatization of U.S Money Market is a monetary policy that would be applauded by man y citizens, there are a number of obstacles that would pose hindrance to the move.

The most important obstacle to overcome in the Money Supply is the existence of competing currencies in the American economy. Different types of money in circulation would possibly cause much transactional inefficiency since various stores across the United States will have their own preferred currency. Secondly, existence of many money issuing firms as well as entry of new players into the monetary system would result into uncontrollable production of money in the economy. These phenomena would bear much negative effects such as inflation and deflation in an economy. Furthermore, any attempt by the government to oversee the operations of the private monetary issuing firms violates the principles of privatization.  

Finally, changes in the government and international policies on economic matters can significantly impact on the efficiency and proper functions of the privatized U.S Money Supply. Congress legislations and other international economic policies are likely to undermine the core functions of the Private Money Supply. 

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