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Transforming the monetary system

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  • Volodymyr Vysochansky

Abstract

The contemporary fiat‐money regime is characterised by structural deficiencies that exacerbate coordination failures among economic agents and undermine social cohesion through ineffective state regulation and unintended policy side effects. Drawing on Austrian School insights and enabled by modern exchange infrastructures, I propose a self‐regulated monetary framework that aligns money issuance with participants' preferences, enforces sound‐money principles, and leverages a Value Standard Exchange‐Traded Fund (VS ETF) of commodity futures. The study details such a system's key components, its endogenous self‐regulation mechanism, and the requisite technological and institutional infrastructure, and it outlines a feasible path for a gradual, non‐coercive transition from the existing regime.

Suggested Citation

  • Volodymyr Vysochansky, 2025. "Transforming the monetary system," Economic Affairs, Wiley Blackwell, vol. 45(3), pages 497-508, October.
    • Handle: RePEc:bla:ecaffa:v:45:y:2025:i:3:p:497-508
    DOI: 10.1111/ecaf.70005
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    References listed on IDEAS

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    1. Silvana Tenreyro & Gregory Thwaites, 2016. "Pushing on a String: US Monetary Policy Is Less Powerful in Recessions," American Economic Journal: Macroeconomics, American Economic Association, vol. 8(4), pages 43-74, October.
    2. Michael McLeay & Amar Radia & Ryland Thomas, 2014. "Money creation in the modern economy," Bank of England Quarterly Bulletin, Bank of England, vol. 54(1), pages 14-27.
    3. James Peery Cover, 1992. "Asymmetric Effects of Positive and Negative Money-Supply Shocks," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(4), pages 1261-1282.
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    1. Volodymyr Vysochansky, 2026. "Responsible politics means resource constraints, transparency and the separation of money from political power," Economic Affairs, Wiley Blackwell, vol. 46(2), pages 346-356, June.

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