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By A. Rayman

Quantity II proposes radical reform (1) of the accounting approach – to deliver company administration lower than the keep watch over of industry forces; and (2) of the tax procedure – to allow the economic system to develop to its complete power and to set up an automated mechanism for rate balance with none arbitrary intervention.

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1. 1 75 75 75 £ billion Other Duties and Fees (not replaced) 32 Ch. 4 Globalisation: Blessing or Curse? 33 in different gears, the flow of resources may be distorted by differences in the level of activity. Regionalisation of circulation operates in the same way as the “liftout” partitions in a tray of ice cubes. The liquid can flow fairly rapidly in response to natural forces without destabilising surges. Multi-gear maintenance of the level of economic activity in “top gear” has two benefits. First, it does not interfere with, or create obstacles to, the movement of resources between regions in response to market forces.

There is a danger of contagion spreading from one country to another in an economic chain-reaction. The world economy can be pictured as a vast tray full of resources. Sometimes the resources are highly mobile and flow freely like water into their areas of “comparative advantage”; sometimes they are extremely inert and move sluggishly like treacle. The tray itself is divided into separate compartments representing national economies. Some economies are like watertight bulkheads. They are isolated from the rest 28 Ch.

That may sound odd. Inflation can be a killer, if it gets out of control. It bears some measure of responsibility for the collapse of societies from Ancient Rome to the Weimar Republic. What, then, is the exact cause of the danger? The True Nature of Inflation If all prices and incomes were to be multiplied overnight by, say, twelve, there would be no problem – provided that each £1 of last night’s monetary claims (including notes and coin in wallets and purses, bank balances, debts, and other obligations) could be exchanged for £12 of today’s.

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