Statement of Tasks

for the 

ICE - Institute for Creditary Economics  


ICE wishes to study in depth a number of recurrent problems. These are.
(author: Geoffrey Gardiner)

1. Asset price inflation, a phenomenon which owes its existence to imprudent credit creation.

2. The relationship, if any, of asset price inflation to general inflation.

3. The relationship of interest rates to inflation. The Gibson Paradox (1923)suggests that interest rates and inflation are positively correlated, interest being a cost like any other, whereas conventional monetary theory adopts the theory of J. Horsley Palmer (1832) that the relationship is a negative one. ICE wishes to instigate research as to what really causes suppliers to change prices. The research should be by questioning, not by the use of statistical methods.

4. ICE would like to establish whether principle of the free market can be universally applied, or whether there are some industries to which it is inapplicable.

5. One of these studies should be farming.

6. The second should be of primary industries.

7. ICE wishes to study why exchange rates are so far from purchasing power parities and whether should or could be done about the phenomenon.

8  Following the same problem ICE would like to study whether all countries should be obliged to hold their foreign exchange reserves in the currencies of their trading partners in the same proportions as trade with each nation.

9. If so, should the proportions be determined by market rates of exchange or by purchasing power parities.

10. ICE would like to study the whole range of taxation problems. These are too many to enumerate but would include harmonisation, the taxation of non-renewable resources, the relative wisdom of financing social security by employment taxes or value added taxes.

11. ICE wishes to consider whether the funding of pension schemes serves a useful purpose, or merely creates asset bubbles. If they are not necessary, how can states be made to honour obligations made to prospective pensioners under in and out schemes.

12. ICE what like to ascertain what is the optimum variation if the distribution of wealth to achieve the biggest "cake" for division. To what extent is uneven division of wealth a reflection of age, and/or inheritance.

13. ICE wishes to study whether capital profits can be taxed without destabilising markets.

14. ICE recognises that all taxes are on the income of society, that is the current production of goods and services, and that capital taxes are really income taxes though they are computed by reference to capital values.

15. ICE wishes to examine all ways in which the credit supply may be intelligently regulated, without distorting markets or competition, and without crating a monster bureaucracy.

16. ICE wishes to study the feasibility of using the variation of capital adequacy ratios for the control of the quantity of bank credit directed at sectors of lending.

17. ICE wishes to study how funds (insurance etc) may be channeled to infrastructure and other public services, making the national economic system more efficient in a wide sense, rather than pumping up prices in real estate markets, stock markets etc.

18. ICE wishes to study how taxes may be used to promote productivity improvements in the national industrial structure.



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