{"resolved":true,"match_type":"uuid","source_type":"original_book","book_id":"6dfd053e-a721-41da-a147-63bee43ea5ea","title":"Fully Automated Luxury Communism A Manifesto","author":null,"edition":null,"publisher":null,"year":null,"isbn":"9781786632623","requested_by":"printed_page","book":{"source_type":"original_book","book_id":"6dfd053e-a721-41da-a147-63bee43ea5ea","id":"6dfd053e-a721-41da-a147-63bee43ea5ea","uuid":"6dfd053e-a721-41da-a147-63bee43ea5ea","title":"Fully Automated Luxury Communism A Manifesto","normalized_title":"fullyautomatedluxurycommunismamanifesto","author":null,"edition":null,"publisher":null,"year":null,"isbn":"9781786632623","isbns":["9781786632623","9781788732468","9781786632654","9781786632647"],"parsed":true,"ai_readable":true,"document_type":"book","page_count":288,"navigation_url":"https://workshop.closeclaw.top/ai/book/6dfd053e-a721-41da-a147-63bee43ea5ea","title_url":"https://workshop.closeclaw.top/ai/title/Fully%20Automated%20Luxury%20Communism%20A%20Manifesto","fixed_page_url_template":"https://workshop.closeclaw.top/ai/book/6dfd053e-a721-41da-a147-63bee43ea5ea/page/{printed_page}","path_api_url_template":"https://workshop.closeclaw.top/api/ai/book/6dfd053e-a721-41da-a147-63bee43ea5ea/page/{printed_page}","read_url":"https://workshop.closeclaw.top/api/ai/read/6dfd053e-a721-41da-a147-63bee43ea5ea","page_url":"https://workshop.closeclaw.top/api/ai/books/6dfd053e-a721-41da-a147-63bee43ea5ea/page","search_url":"https://workshop.closeclaw.top/api/ai/books/6dfd053e-a721-41da-a147-63bee43ea5ea/search"},"page":{"printed_page":228,"pdf_page":237,"physical_index":237,"physical_index_base":0,"printed_page_status":"recognized","page_sha256":"44bf1d522a98893d5c9084769610612adb7f08cb9f418265e46d60b2a27b4c01"},"chapter":"Fully Automated Luxury Communism","content":"So what is to be done with the central banks of the early twenty-first century? As with the introduction of municipal protectionism, UBS and the shift to a post-carbon energy infrastructure, change will be both decisive and incremental. What must happen immediately, however, is an end to the monetarist policies which have privileged low inflation at the cost of all else. This central pillar of neoliberalism – sold as part of a broader set of policies during the Thatcher and Reagan years – was identified as necessary in dealing with issues of inflation which increasingly beset the economies of the Global North after the early 1970s. After that, the ideologues said, sustainable economic growth was only possible with low, controlled inflation, and central banks had to play a leading role in the new orthodoxy. Yet, as already discussed, average GDP growth has fallen in each decade since. It has become increasingly hard to argue that the purpose of low inflation is anything other than to advantage asset-holders and creditors over those with debts. In short, monetarism and low-inflation ideology is just one part of the rigged system that serves speculative capital and the wealthy at the expense of everything else.\n\nWhich is why in the transition to FALC the role of central banks will change once more, the emphasis moving away from low inflation – at present the Bank of England has a target of 2 per cent – to rising wages, high productivity and afordable house prices. This would be part of a broader programme to politicise central banks as central planners and democratise these supposedly ‘neutral’ institutions.\n\nIn terms of how central banks might keep a lid on property prices – presently a major source of value and profit in financialised economies – a paper released by the IPPR think tank in July 2018 is instructive. It argues that the necessary measures are relatively straightforward, with the Bank’s Financial Policy Committee best placed to set a target for house price inflation – similar to how the Monetary Policy Committee is presently tasked with consumer price inflation. Under such a target the Bank of England would aim to keep nominal house price inflation at zero while the UBS of housing was guaranteed through a programme of mass home building by central and local government. The report outlines how that target would be met by using macro-prudential tools such as capital requirements, loan-to-value, and debtto-income ratios while restricting overseas purchases of UK residential property. This, alongside building millions of new homes, would almost certainly mean house prices would fall over the space of a generation.\n\n228\n\nparadise found","previous_page":227,"next_page":229}