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Bill: Amended Economic Liberalization Act
Details
Submitted by[?]: Green Liberal Party of Kalistan
Status[?]: defeated
Votes: This is an ordinary bill. It requires more yes votes than no votes. This bill will not pass any sooner than the deadline.
Voting deadline: September 4952
Description[?]:
| The Green Liberal Party seeks to allow the Kalistani ruble's exchange rate to freely float on the market, with the Republican Bank instead controlling monetary policy via open market operations that grant banks liquidity through repurchasing agreements involving the exchange of government securities for currency. Such a policy allows for the currency and for the economy to more readily adapt to economic shocks as investors can rapidly fluctuate their demand for the currency based on the country's economic prospects. In addition, the Republican Bank shall be tasked with setting a fractional reserve requirement for banks in Kalistan, being able to fluctuate the requirements up or down in order to control interest rates and the amount of liquidity in Kalistan's economy. Moving away from a full reserve requirement to a fractional reserve requirement shall allow for increased lending in Kalistan's economy, therefore contributing to economic growth and increased private-sector employment. |
Proposals
Article 1
Proposal[?] to change Exchange rate regime
Old value:: The exchange rate of the national currency is kept within a defined band of fluctuation.
Current: The exchange rate of the national currency is kept within a defined band of fluctuation.
Proposed: The exchange rate of the national currency is allowed to float, and the government does not intervene at all.
Article 2
Proposal[?] to change Reserve requirements for bank loans
Old value:: There is a full reserve requirement for bank loans.
Current: There is a full reserve requirement for bank loans, but small banks and credit unions are exempt.
Proposed: There is a fractional reserve requirement for bank loans.
Debate
These messages have been posted to debate on this bill:
| Date | 01:38:45, June 14, 2021 CET | From | Socialist Party of Kalistan (SPoK) | To | Debating the Amended Economic Liberalization Act |
| Message | Liquidity is not commensurate with zero growth measures. We are convinced that the Liberals view free capital movement as a good thing, in accord with their ideological adherence with the doctrine of liberalism. The Problem is that this violates the merchantilistic function of public sector institutions in Kalistan, which exist specifically and explicitly to serve the need of the people of this Republic, without regard to their position in relation to the means of production of their possession of the ability to invest in capitalistic enterprises. The National Industries exist to ensure that the National Government and the Republic can operate in a way that is entirely insulated from any sort of foreign interference. We have plenty of other opportunities for foreigners and domestic capitalists to invest in our economy, but the National industries must remain entirely apart from market pressures which can be manipulated by private actors for private benefit at the expense of the needs of the society. The Socialist Party of Kalistan is the Party of Kalistan's Revolutionary institutions. We therefore consider it our obligation to protect the Republic's institutions from the twin scourges of fascism and privatization. And we will do what we can to oppose a profit-seeking, positive growth restructuring of the economy of Kalistan. |
| Date | 03:40:20, June 14, 2021 CET | From | Green Liberal Party of Kalistan | To | Debating the Amended Economic Liberalization Act |
| Message | Nothing in the bill attempts to privatize or liquidate any National Industries controlled by the Kalistani government via the "dual economy." Rather, this bill is attempting to lift state controls on the private sector and seek to allow for a more flexible lending environment by which businesses, including small businesses, can thrive in this country. Public companies will still provide public services, but there's no sin in allowing private corporations to make the profits necessary to actually enrich this nation's workers. It is our belief, as Liberals, that a rising tide lifts all boats. |
| Date | 03:41:38, June 14, 2021 CET | From | Green Liberal Party of Kalistan | To | Debating the Amended Economic Liberalization Act |
| Message | In addition, we have stripped this bill of any measures to increase foreign investment in the economy in line with the objections raised by the Coalition of Workers, so we hope for their vote. They, more than anyone else, must recognize that workers benefit through higher wages and more generous benefits when the private sector is allowed to succeed and is allowed the flexibility to engage in the processes of competition and creative destruction. |
| Date | 16:09:21, June 14, 2021 CET | From | Socialist Party of Kalistan (SPoK) | To | Debating the Amended Economic Liberalization Act |
| Message | Comrades, this bill specifically addresses the Republican bank and reserve requirements. Neither of the two actionable provisions deal with the private sector. The currency is not a private sector institution, and neither is the Republican banking system. The effect of forcing banks to eliminate their reserve requirements will allow speculation in the economy and will weaken confidence in banks being able to cover deposits. But it should also be pointed out that there is no law limiting of governing private sources of capital and loans. Those institutions, which are not responsible to safeguard individual deposits and do not serve as the single payee for all public debts and expenditures, have generated economic growth, and are almost entirely unregulated: in fact the only regulations that cover those institutions I believe are truth in advertisement requirements. We will oppose and rncourage our friends in COW to do so as well. |
| Date | 16:15:33, June 14, 2021 CET | From | Green Liberal Party of Kalistan | To | Debating the Amended Economic Liberalization Act |
| Message | The Republican Bank also sets all interest rates to be charged, according to the Republican Bank Act. With a full reserve requirement, interest rates have been set far too high for debt-financing to be a viable option for many individual entrepreneurs and corporations, thereby stunting economic growth by limiting business activity. Banks must be given more flexibility to lend if they are to set the lower interest rates needed to kick-start the economy into motion, which will benefit businesses and workers alike. |
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Voting
| Vote | Seats | |
| yes | Total Seats: 0 | |
| no | Total Seats: 15 | |
| abstain |
Total Seats: 235 |
| Random fact: Unless otherwise stated, monarchs and their royal houses will be presumed to be owned by the player who introduced the bill appointing them to their position. |
| Random quote: "I came, I saw, I conquered" - Julius Caesar |