model of a protected currency area for developing countries
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It is the description of a complementary currency with the attribute of a never changing value, settled by a never changing quantity of this complementary currency. It leads to the possibility of ...
It is the description of a complementary currency with the attribute of a never changing value, settled by a never changing quantity of this complementary currency. It leads to the possibility of monetary scaling based on this absolute value and allows the introduction of mathematically determined exchange rates. Also Trading imbalances can be considered in the mathematically determination of exchange rates.
It is the model of a global reference complementary currency, abbreviating named ANNA, with the task to be a currency and exchange rate system for central banks.
It should be seen as a system of voluntary participation and leads to a currency area, if more than one country will participate to the system. The architecture of the monetary system implies minimum a second complementary currency as an intermediary foreign exchange currency. This monetary design will lead to a protection of the currency area, because:
1) It is a global system and independent from national interests. The monetary policy in ANNA will be less complex due to the absence of additional money supply and interest rates.
2) The intermediary foreign exchange currency leads to balancing effects between the systems of ANNA and FOREX
3) Monetary policy of single national inside currencies remains completely in self determination of the countries.
4) The exchange rates of inside currencies are always conclusive to each other, due to the mathematically determination. It prevents from speculative trading of currencies.
5) The never changing value of ANNA is a long term consideration of debts. It allows also the introduction of independent interest free national currencies. Both aspects together can be seen as a tool to interrupt the helix of debts.
The system succeeds if mutual benefits can be obtained for the FOREX and the participating countries. Heavily indebted poor countries could fulfill these requirements.
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