Planetary CFO
  • Blog/Home
  • About
  • Ideas in a nutshell
  • A Finance Manual for the Planet
  • Contact
  • Gallery

Planetary CFO

EcoPound

13/3/2023

0 Comments

 
Having an asset-backed currency with a unit of sustainably managed land as the asset backing (without using a fractionally backed approach), would generate an incentive for beneficial actions, because the creation (or conversion) of (privately owned) land to sustainably managed land would in itself be a good thing while at the same time being wealth-creating for the landowner. Of necessity, governments or central banks would need to own (or control) significant reserves of sustainably managed land in order to provide this asset backing to their currencies. Not a problem to achieve in practice  – they already own much land and could always use compulsory purchase powers to create adequate levels of such reserves within a balanced economy and ecosystem.

This new form of currency, which one could call, for example, the "Ecopound", providing it was taken up by reputable governments and central banks, could provide all the benefits of being a medium of exchange and could also provide a store of value (overcoming some of the shortcomings of gold as a historical form of asset backing) while encouraging the maintenance (and expansion) of the stock of sustainable land which backs it. By the very nature of the finite supply of the asset backing, this currency would protect against the worst boom-and-bust cycles of existing economic cycles, by providing a stable and limited supply of the asset (and therefore of the money supply). It would also prevent a recurrence of the financial meltdown of circa 2008 and the fall of banks such as happened to Northern Rock at that time.

This is a repost of a blog post of mine from a few years ago: 
​http://greencleantech.weebly.com/nutshell.html
0 Comments



Leave a Reply.

    Author

    The Planetary CFO - working towards a sustainable World Balance Sheet.

    Categories

    All
    Climate Change
    Economics
    Inequality
    Land Use
    Migrants
    Sustainability
    The Role
    Transport
    World Balance Sheet

    Archives

    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015

Powered by Create your own unique website with customizable templates.
  • Blog/Home
  • About
  • Ideas in a nutshell
  • A Finance Manual for the Planet
  • Contact
  • Gallery