Will fund test

[mosler@xxxxxxxx]

I am interested in providing funding for any
academic institution that wishes to do a case
study of the plan described below.  The purpose is
to establish an operating fiat monetary system
and analyze the implications.

The school must be willing to require at least one
hour of community service per month per student.

The school will issue a list of acceptable tasks
that will qualify as community service.

The school will issue comunity service notes (CSN's)
to anyone who performs any of the specified tasks.

Each student will be required to pay a tax of 3 CSN's
per quarter.

CSN's can be freely traded without restriction.

The school will initially offer to pay interest on any CSN's
kept on deposit at the school at a rate of 10% per month.

Individual professors may impose an additional tax of up
to 1 CSN per month and may use CSN's to purchase labor for
use in their classrooms.  However, they are not required to
tax or spend.

I believe this will constitute a fully operational system.
Foreign exchange markets may develope, as students may buy
and sell CSN's for external currencies as needed.

It will become obvious that the school will, in general, run
a budget deficit.  It will necessarily spend more CSN's than
it taxes in the first three month period, and probably thereafter.

The function of interest rates can be explored.  That is, what will
changes in interest rates do to the amount of comunity service work
performed.

It will become obvious that spending by the school is not revenue
based.

Etc.

I am willing to pay for all the materials necessary to run the
program.

p.s.  It has been suggested that if we really want to simulate
the current world situation, we need to use an elementary school....

Warren B. Mosler
Director of Economic Analysis
III Finance

See "Soft Currency Economics:"

http://inca.gate.net/~mosler/softecon.html