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.