Not sure what to think of this idea except for this bit:
The solution is to set up a system of International Monetary Exchanges (IMX) through which all interbank transactions would go. There would be one for each leading currency – a global euro exchange, a dollar exchange, a yen exchange and a sterling exchange. The respective central bank for each currency, for example the Bank of England, would own, run and decide who can join the IMXs.
They would operate like any normal exchange, such as the Stock Exchange, but would have the critical benefit that, because the central banks would guarantee them, there would be no reason for banks not to supply funds to them. Furthermore, participants could deal freely with the exchange without having to inquire about other members\’ credit status.
We can identify a few more key features of such a system. First, anyone could offer liquidity to the exchange at a set price, including the central banks. Second, all interbank lending of participating institutions would have to be made through the exchange. Third, borrowing from the exchange would be at the same price irrespective of borrower.
It\’s that last sentence that I do have a view about.
We\’re seriously suggesting that any and every member of the market gets to borrow money at the same price?
Regardless of credit risk?
No, no and thrice no.