Research Article
Reform of the Global Monetary System: Supranational Currency GES
Volodymyr Ognevyi*
Issue:
Volume 14, Issue 2, June 2025
Pages:
22-33
Received:
25 February 2025
Accepted:
1 April 2025
Published:
14 April 2025
DOI:
10.11648/j.eco.20251402.11
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Abstract: The current crisis of the global monetary system forces the world community to search for ways of its reform. The focus is, first of all, on the issue of a qualitatively new international currency. In the context of this problem, a project is presented for the reincarnation of the Keynesian idea of an "objective standard of the value of a composite commodity", which in this case is the combined grain of the International Grains Council (IGC), with the aim of creating on its basis a supranational monetary unit GES (Grain Equivalent Standard) as an exchange rate benchmark /measure of value/ of national currencies plus for practical use as an international payment and reserve instrument. Since the movement of the market value of IGC grain is in the trend of the long-term movement of the value of the prevailing mass of commodity products, the new monetary architecture assumes, in essence, the binding of the GES currency to the general price trend of the world economy, which guarantees the stability of this currency in terms of purchasing power in the long term. – Guarantee of stability of global finances. Two options for reforming the global monetary system are proposed. The first option involves the creation of a global currency GES based on the weighted average value (in US dollars) on the world market of the IGC grain standard. – A symbolic currency, devoid of its own monetary base, is used as a measure of value and an international unit of account, an analogue of the SDR. The second option involves the creation of a global GES currency on its own monetary base, value-formatted by the global economy and attached to the weight of the IGC grain standard similar to the gold-dollar standard. – The currency is quite real, autonomous (independent of national currencies), used as a measure of value, a full-fledged means of monetary circulation, with the exception of bank lending. The first option involves linking the world currency to the market value of the IGC grain standard, the second – its direct value link to the weight of the IGC standard. Reforming the monetary system is designed to "anchor" national currencies (including the US dollar) on a solid material-value basis of the global economy, calm the emission-monetary bacchanalia in the world, stabilize the system of international settlements and payments, normalize equivalent commodity exchange in world trade, clearing pricing from pseudo-value falsity.
Abstract: The current crisis of the global monetary system forces the world community to search for ways of its reform. The focus is, first of all, on the issue of a qualitatively new international currency. In the context of this problem, a project is presented for the reincarnation of the Keynesian idea of an "objective standard of the value of a composite...
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