8. Brief mention should be made of the fact that some portions of unemployment are artificial and are, in fact, paid vacations. The proper answer to this problem lies in the consideration and creation of an Income Maintenance Savings Fund. Under the proposed system, loans would be widely available for income maintenance purposes. Individual accounts would be established and drawn down when necessary. This proposed system is described in greater detail in the earlier Second Report.
9. Monetary policy and employment policy should be clearly separated. Inflation and unemployment are two different and distinct problems. It is incorrect to use monetary policy (i.e. inflation) to seek to raise the levels of employment and production. There is only one simple objective for a proper monetary policy. That is to seek and attain price stability. This can be done through proper limitation of the quantity of money created by the monetary and banking system. Our present monetary policies diverge considerably from this simple and proper goal.
The 2009 Report, as well as a short version, can be found at www.aesopinstitute.org
9. Monetary policy and employment policy should be clearly separated. Inflation and unemployment are two different and distinct problems. It is incorrect to use monetary policy (i.e. inflation) to seek to raise the levels of employment and production. There is only one simple objective for a proper monetary policy. That is to seek and attain price stability. This can be done through proper limitation of the quantity of money created by the monetary and banking system. Our present monetary policies diverge considerably from this simple and proper goal.
The 2009 Report, as well as a short version, can be found at www.aesopinstitute.org
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