The monetary reform is a term that is used to denote the government policies that are meant to modify the banking industry of the country. At the same time, establishing a central bank or introducing functional reforms in the existing central bank, is a major objective of the monetary reform. Creation and distribution of money is also a part of the monetary reform. Again, the reform is also aimed at providing honest assessment of the financial and economic growth of the country. Assessing national income is also a part of the monetary reform.
According to the experts and the scholars of the field, the monetary reform is done with a purpose of controlling the level of inflation in the country. For the purpose, the national governments bring a number of changes in the system to achieve the desired goal. But at the same time, a huge number of experts believe that the monetary reforms can become more successful if the central banks are made autonomous organizations. Establishing a currency board is also a good option for introducing monetary reforms but the operational freedom of the board should be guaranteed.
There are a number of economists who are not happy with the monetary reform plans drafted by major financial institutions like IMF and World Bank. These monetary reforms are regarding the supply of money, functioning of banks and many more in the developing countries.
The theorists have offered several opinions about the process and ‘should-be’ objective of monetary reform. According to a number of theorists, the total system of money and currency should be rebuilt and the base of this reformation must be Natural Capitalism. The proposals of these people are based on the factors like soft currency, local service economy and many more.
At the same time, there are some other theorists who are in favor of global monetary reforms that can bring about peace in the whole world. Major parts of the economists support the monetary reform but there are also a number of economists who are against globalization and these people have some different ideas about the monetary reform.
Last Updated on : 1st July 2013