Asymptotically Ideal Money
After writing and speaking on a concept of "Ideal Money" which
was itself arrived at after many years of meditation I now have also thought
of a parallel concept which relates to political realities, psychology
influencing the actions of politicians and voters or citizens, and which
provides a concept of what may actually transpire in the evolution of customs
and culture (as it were) relating to money.
The ultimately launched concept of "Ideal Money" became possible when I
conceived of a practical basis for a standardization of the comparison of the
value of the currency with an appropriate standard or ideal. And the key to
that was the idea of an ICPI or (international) "Industrial Consumption Price
Index". (That is thus like the U.S. CPI which controls Social Security payouts
but is adapted to relate to industrial producers rather than to individuals
and it is envisioned as being essentially dependent, by choice of its
definition, on costs that are very global in nature, like, for example, the
cost of oil from OPEC and other producers or the cost of platinum, tungsten,
But one cannot logically feel confident of the adoption internationally of
an ideal system of currency or currencies in an achievement analogous to the
achievement of the metric system or of "the euro". Such a result would
necessarily have a political content since it is the states that control and
supply the various currencies that are in use at the present time. And
projects requiring political support may be difficult to achieve or
comparatively easy to achieve depending on elements of "political reality"
which may differ considerably from the actual merits or lack of merits of the
projects (as evaluated from, say, a scientific or economic or
So it occurs to me to think that that which is not achieved by
a grand action of establishment by "fiat" may alternatively tend to
come into existence as a consequence of a process of evolution. And
of course, after a certain degree of progress by "evolution" the
rest of the progress could possibly be realized by a convention or
a process of "fiat".
Currencies of Improving Quality
From the viewpoint of parties domiciled outside of the territory
of where a specific currency (such as, e.g. the currency of Brazil) is
established the "quality" of that currency is evaluated according to the
reasonable appraisals of the probabilities of loss in value of
the unit of that currency, particularly in comparison with other currencies
and also in comparison with alternatives available for
use for "storage of value", like gold or commodities in general.
The more that the probabilities of loss seem to be large the more
that currency will be evaluated as of "low quality".
On the other hand, "Keynesian" central bankers or associated and
advising economists, WITHIN the state responsible for the currency
in question (such as, e.g. Brazil), may be arguing that they should
have and use methods of operation that will tend to act in varying
degrees at various times to increase the supply of the currency and
thus cause, ultimately, declines in its value. They may argue that these
actions, in which they have some discretionary options, are beneficial for the
general welfare within the territory of the state (e.g., Brazil).