This is the next installment in a series where I design, with your help, a small, hypothetical new nation called Ascendia, based on small government, personal liberty, and free markets. Please read parts one, two, three, four and five if you have not yet before reading this article so that you’re up to speed. Today I will lay out how Ascendia will handle its monetary policy.
The issue of monetary policy, or how a nation manages its money supply and interest rates, is a little complicated, primarily since there’s no ideal way to do it. Like talking about marriage and raising kids in the modern era, any way you can think of doing it is seriously problematic. Therefore, the goal is not to get to good or best, but simply the least bad, since all options suck.