Low inflation gives the Reserve Bank reason to pause

While the head of the global central bank would wield considerable power, he would serve only at the pleasure of his political masters, although with a fixed term or terms. He would have a clear mandate to control inflation. The primary target would be goods and services inflation, with asset inflation as an important secondary target to be varied as the world gained experience of the proposed new system.

Nations could retain their own currencies if they wished, although sensible leaders would link these currencies to the global currency. Devaluation of national currencies would be possible, though serial devaluers would find it increasingly necessary to prepare contracts in a strong currency, which might increasingly be the global currency

The modern capitalist world is sitting uneasily between two radically different systems of monetary policy.

The discretion allowed with the flexible Taylor Rule method of setting interest rates in each nation contributes to the imbalances that so bedevil global economic development. Moving to a global system of base money control, administered by a global monetary authority independent of political government, is the logical alternative to the current system.

It may take a very damaging outbreak of inflationary global boom and bust for this idea to be taken seriously.