A WAY TO IMPROVE QUANTITATIVE EASING THROUGH THE IMPLEMENTATION OF A COMMODITY RESERVE

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In recent years,in response to a prolonged recession and the exhaustion of conventional monetary policies and to stimulate economic recovery,the major West economies have had to adopt unconventional quantitative easing monetary policies.Although there is no conclusive theoretical evidence for quantitative easing and its actual effects are as yet unknown,the process of implementing this policy has almost totally disproved mainstream West monetary theory,based as it is on the quantity theory of money.Therefore,we need to rediscover the theoretical basis of quantitative easing.Only by completely abandoning the quantity theory of money and observing monetary phenomena in the light of Marx’s monetary theory will it be possible to find the best path to improve quantitative easing and construct a feasible and promising new monetary system for the market economy on the basis of summarizing the lessons leed from West quantitative easing combined with China’s historical successes.
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