Who Will Fix the Flawed Global Economic System?

The Central Banks are injecting cash liquidity to save the depositors accounts in the failed banking system. At the same time, the USA Federal Reserve, European Central Bank and other Central Banks are not taking the necessary effective initiatives to fix the flawed global economic system. The question is “Why?”.

Fixing the global economy is a complex and ongoing process that requires the cooperation and coordination of many different actors, including governments, international organizations, central banks, and private sector entities. There is no single person or entity that can fix the global economy on their own. That includes Central Banks.

Central banks are responsible for implementing monetary policy and ensuring the stability of the financial system. When banks fail or face liquidity shortages, central banks may provide short-term funding to help stabilize the financial system and prevent a wider economic crisis.

The underlying structural issues of the global economic system are beyond the capacity and mandate of the global central banks. Addressing such huge task requires coordinated action by governments, international organizations, and other stakeholders. Some of the structural issues of the global economic system include income inequality, trade imbalances, and the concentration of economic power in a few large corporations.?

That said, central banks can play a role in addressing some of these issues by implementing policies that promote sustainable and inclusive economic growth, such as supporting job creation and investing in green technologies. However, it is ultimately up to governments and other stakeholders to lead efforts to fix the structural flaws of the global economic system.

Central banks can also adjust the interest rates to limit inflation or encourage borrowing and spending. Tin the recent past central banks implemented the quantitative easing programs to inject liquidity into the financial system following the financial crisis of 2008.

However, achieving long-term economic stability and sustainability requires a comprehensive approach that addresses the underlying structural issues in the global economic system. This may involve policy changes at the national and international levels, as well as efforts to promote greater cooperation and coordination among countries and stakeholders.

For example, governments can implement fiscal policies, such as increasing public spending or reducing taxes, to stimulate economic growth. Central banks can use monetary policies, such as adjusting interest rates or implementing quantitative easing, to help control inflation and stabilize financial markets.

The Potential Economy Savers and the Plan

International organizations like the International Monetary Fund (IMF) and the World Bank can provide financial assistance and expertise to countries in need, while private sector entities can invest in new technologies and innovations that can create jobs and improve productivity.

The task of fixing the global economy requires a coordinated effort and a long-term commitment from all actors involved to address structural issues and promote sustainable economic growth. Such task is a complex system that is influenced by a wide range of factors, including government policies, economic conditions, trade agreements, and technological advancements. As such, there is no single person or entity that can fix the global economy on their own.

Some of the effective measures that can promote economic growth and stability on a global scale. These may include:

１.??Good Financial Governance at country level.?

２.??Drafting a universal agreement on the generally accepted shared value system with the aim to revise the foundations of the Market Economy.

３.??Collaborative efforts between governments, international organizations, and businesses to promote economic development and cooperation.

４.??Implementation of policies that promote free and fair trade, reduce trade barriers, and encourage investment.

５.??Investment in education, infrastructure, and technology to create jobs and drive innovation.

６.??Development of sustainable economic practices, taking into account the environmental concerns and social responsibility.

７.??Adopting the United Nations Sustainable Development Goals as the end result of an globally accepted economic system principles and framework.

Assets of The Central Banks

As of September 2021, the total assets of the US Federal Reserve were approximately $8.3 trillion. This includes a variety of assets such as US Treasury securities, mortgage-backed securities, and other securities.

As for the European Central Bank (ECB), their total assets were approximately €8.4 trillion, or roughly $9.9 trillion USD at the time. This includes a range of assets such as government bonds, corporate bonds, and asset-backed securities, among others.

The assets of Central Banks change over time due to a variety of factors, including changes in monetary policy and economic conditions.?