THE NEW MONETARY ECONOMICS REVISITED.

The article discusses the New Monetary Economics (NME), which claims that monetary exchange should be liberalized by being freed from government fiat base money and instead tied to a commodity unit of account. Such monetary separation is said to require falling demand for currency issued by central banks. Other topics include the use of real-time gross settlement (RTGS) by commercial banks, the use of liquidity-saving mechanisms (LSMs), and the impact of computer algorithms in the settlement of interbank payments.