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- Inflation targeting is the new gold standard (Ajay Shah, Economic Times) Ajay Shah contributes to Global Economic Intersection.
"There is no game in town other than gold, dollar and the CPI basket. We have to choose one. Inflation targeting anchors the Indian rupee to the price of the CPI basket."
- Milton Friedman’s 1948 Functional Finance Proposal (L. Randall Wray, Credit Writedowns) Friedman's proposal derives from the work of Irving Fisher in the 1930s which essentially made the creation of money a government function by means of requiring 100% reserve banking. The Irving proposal was also a project of Henry Simons at the University of Chicago and their work is often referred to as the Chicago Plan. The system that was proposed was essentially to move the creation of money from mostly private bank credit to direct creation by the government, or what some have called debt-free money. See GEI Opinion, GEI News and GEI Analysis.
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