Metrics

New metrics need to complement current statistics to put sound monetary policy and financial transparency into practice:

1. in the money supply of a nation:

• the Cash : Credit ratio or the Cash and the Credit percentage of the total money in circulation
• the percentage of interest payments of the national debt
• the amoung of interest-free currency issued, aka M0

2. in the budget of a government:

• the taxes : borrowing ratio or the percentage of taxes vs the percentage of borrowing in the total budget
• the percentage of interest payments in the total budget is already a well published figure; but not enough people seem to understand the implications.

3. among the indicators of “big money pictures”:

• “price inflation” over short, medium and long terms
• “monetary inflation” as the increase in the supply of M0 (Cash) and M4 (Credit)
• “monetary purchasing power” as a correlation between price and monetary inflation.