INTERNATIONAL ORGANIZATION FOR CONTROL OF MONETARY SYSTEM
IOFCOMS
IOFCOMS
ARTICLE 1 |establishment|
1. Establishing International Organization for Control of Monetary System. Acronym of this organization is IOFCOMS.
2. Every nation has headquarters in their capital city.
3. National Bank cooperates with IOFCOMS. One meeting at week to discuss about monetary status. In cooperation they are determining using of monetary instruments :
* Discount Rate - lowest interest rate at which the central bank provides loans to commercial banks in order to be liquid.
* Reserve requirements - the funds paid by commercial bank account on the central bank account. This rate is determined by the central bank and IOFCOMS. At this rate affects the credit potentials. If the required reserve ratio increasing, decreasing credit system and if it is lower than the lending bank is illiquid.
* Selective rediscount loans - loans earmarked for the achievement of the objectives of economic policy (Invest In agriculture, industry).
4. State is enabled to terminate influence of IOFCOMS on their market.
5. IOFCOMS system can be installed in different ways :
*Advice system – IOFCOMS just advises National Bank and propouses measures to
guarantee stable monetary system
*5/10 system – IOFCOMS has 5/10 persons in Executive Board of National Bank.
That way politics cannot have influence on economic and monetary system.
*Full Economic Control System – IOFCOMS control National Economic System if
state cannot fund National Bank. Of course, persons with citizenship can operate
in this IOFCOMS system only in their country, to prevent manipulating of other
nations.
* Habitual 4/10 System - IOFCOMS working in normal terms : Cooperation with National Bank. Together deciding about all decisions of Monetary and Economy system. National Bank requests a help in some situations. IOFCOMS sometimes provide a credit to National Bank. Using monetary instruments with National Bank controls Monetary System. National Bank can decide without IOFCOMS in decisions, but IOFCOMS can decide to disable credit for that country. In executive board there is 4/10 IOFCOMS persons. That persons must be on high level of Economic education. Economic Faculty certificate is compulsory. National Bank decides witch IOFCOMS members will operate in their Economic System. All nations are presenting it’s results to Executive State IOFCOMS Board once monthly. Executive State IOFCOMS Board presents it’s results to Supreme IOFCOMS Board once at year. Every country can decide in which month will Executive State Board present nations results to The Supreme IOFCOMS Board.
ARTICLE 2 |economic status, monetary policy, monetary instruments|
Economic status – status of one nation that shows it’s economy power. Forming a new economic formulas.
Specific Productivity > Sµ ; UNIT : specific product produce year –
spp/ year
For Example :
Sµ (Fe) = 1000t spp/year
Productivity Number > PPN ; UNIT : number of products that specific number of people can make per year -- SPN /specific product number/ | NoP / Number of People | year
For Example :
PPN (Fe Productivity) = 1000t P | 10 NoP | year
Monthly Productivity Number > MPN : number of products that can make specific number of people in month – SPN /specific product number/ | NoP / Number of People
prd / mth /products per month/. Shows ratio between PPN and 12 months.
For Example :
MPN (Fe) = PPN (Fe Productivity) = 1000t P | 10 NoP | 1 year =
-----------------12 months-------------------------------12 months
= 83,3t P/mth. | 10 NoP | 12 month
Daily Productivity Number > DPN : number of products that can make specific number of people in day – SPN /specific product number/ | NoP / Number of People
P / day /products per day/. Shows ratio between MPN and days in one month.
For Example :
DPN (Fe, August) = MPN = 83,3t P/mth. | 10 NoP | 12 month
-----------------------days in month-------------------31
= 2,68t P/day | 10 NoP | 31 day
Quotient Product Index> QPI : ratio between number of products that can be made and number of products that need to be made.NoPCM / number of products that can be made/, NoPNM / number of products that need to be made /
For Example :
QPI (Fe) = NoPCM = 4000t = 0,67 P
------------NoPNM---6000t
QPI (Fe) = NoPCM = 7000t = 3,5 P
-------------NoPNM---2000t
0 and < of 0
Country do not produce enough products to supply nation. Then country need to buy supplies from other country and comes to import. Nation lose money because needs to pay for that supplies.
1
Country produces exactly products how much she needs. Not less, not more. She do not need export and import.
> 1
Country produces more products that she needs. She corrects it by exporting that supplies and even earns money.
People Productivity Index > PPI ; how much specific number of people need to make products in day/month/year. Ratio between NoPNM / number of products that need to be made / and NoP /Number of People/
For Example :
PPI(Cars, BMW, per year) = NoPNM = 7000 = 28 products/person
-------------------------------- NoP---250
Economy Index > ratio between manpower and products made in one year
E∞ ; UNIT : National Economy Strength (NES)
Always calculating per year.
For Example :
E∞ (Fe/per year) = 48 654 262 manpower = 0,483 NES = 48.3 % NES
----------------------100 564 255 P/year
E∞ (Fe/per year) = 8 563 281 manpower = 0,28 NES = 28 % NES
-----------------------30 565 782 P/year
E∞ is very good. Nation economy status is great. More products are made par year than the manpower.
GOOD E∞ [0-1] and [0-100%]
Situations in which the National Bank and IOFCOMS proposes measures :
- E∞ is 0,40/40% and above
E∞ (Fe/per year) = 100 564 255 manpower = 2,06NES = 206 % NES
------------------------48 654 264 P/year
E∞ (Fe/per year) = 30 565 782 manpower = 3,58 NES = 358 % NES
------------------------8 563 281 P/year
E∞ is bad every time when manpower is bigger than products per year. Nation economy status is bad.
BAD E∞ [>1] and [>100%]
How IOFCOMS and National Bank solve bad E∞ :
- Fire surplus of manpower, but that way we will raise unemployment
- Excess business hours and bigger worker control
- Inserting more manufacturing industries
- Reduce industry technology
With all this measures and more we can make manpower stay same and make more products per year.
Monetary policy and it’s goals and strategy - The key role of the National Bank and IOFCOMS is to ensure monetary and financial stability.
Monetary stability means a low, stable and predictable inflation and confidence in the currency.
Financial stability means healthy financial system in which banks and other financial institutions are functioning well and responsibly are keeping the money of their clients.
The National Bank and IOFCOMS manage inflation target by changing the interest rate, which is applied in the implementation of the main monetary policy operations (currently, in implementing the one-week operations). This rate represents the main instrument of monetary policy, while other instruments of monetary regulation have a supporting role - contribute to a smooth transmission of the reference interest rate on the market, as well as the development of financial markets, without compromising the stability of the financial system
The transmission mechanism of monetary policy is the process through which monetary policy affects macroeconomic aggregates such as aggregate demand, output and prices. It is manifested through various channels, affecting the various aggregates and markets, variable speed and intensity. Identification of the transmission channels enables to determine the most effective set of instruments of monetary policy and the choice of the start of its implementation.
Current and expected monetary policy influence on the money market and financial market. Changes in these markets continue to affect the market of goods and services and, ultimately, on aggregate demand, production and prices. Finally, economic activity and inflation in turn influence monetary policy.
The transmission channels of monetary policy
The main channels of monetary transmission mechanism are:
- interest rate channel
- exchange rate channel
- channel asset prices
Two credit channels:
- bank lending channel
- balance sheet channel
Monetary Instruments
The reference interest rate is the main instrument of monetary policy of the National Bank and IOFCOMS.
Other instruments of monetary policy of the National Bank and IOFCOMS have a supporting role - contribute to the smooth transmission of the reference interest rate on the market, as well as the development of financial markets.
These instruments are:
- open market operations,
- reserve requirements,
- lending and deposit facilities (standing facilities)
- intervention in the foreign exchange market
Monetary policy instruments do not affect directly the objectives of monetary policy. It happens to pass and many months before its effects become visible. The National Bank and IOFCOMS, therefore, focuse on the achievement of operational and intermediate targets. Operational objective can be easily controlled, but is far from the final goal, while the transient target weight control, but is closer to the ultimate goal.
ARTICLE 3 |goals and purpouse of IOFCOM in you nation|
IOFCOMS goals :
- control value and maintain it / value of all nations and main value NS/
- control export and import economy
- control and maintain monetary and economy system stabile
- control inflation and deflation and all monetary instruments
- control bank, pay and fiscal system
- upgrading your economy status
IOFCOMS and National Banks have to maintain stabile world economy with this goals.
Main goal is health world economy.
ARTICLE 4 |establishment IOFCOM in one nation|
IOFCOM needs to establish it’s system in one nation. System can be established on different ways. System implementation depends on economic status :
- bad economic status /BAS/
- medial economic status /MAS/
- good economic status /GOES/
- great economic status /GRES/
Of course implementation system can be different :
- advice system
- 5/10 system
- full economic control system
- habitual 4/10 system
Of course nation needs to fulfill some terms to enter in IOFCOM. That terms are depend by situation and economy status.
BAS – hyperinflation, bad monetary system, few banks, bad economy index, devaluation
National Bank have to correct economy with cooperation of IOFCOM to enter in IOFCOM. IOFCOM gives to National Bank instructions to correct economy and National Bank decides if she want to implement them.
Instructions :
HYPERINFLATION –
Economic currency reform - is done by replacing the old currency devalued new currency unit that returns the confidence in money and contributes to the normal functioning of the economy and the achievement of price stability. It is accompanied by confiscation of part of the money supply and the best effects when that part of the money supply sterilized. When economic reforms currency prices, wages and financial liabilities are not converted in the same proportion to the rate of replacement.
Technical currency reform - shall be invalidated technical replacement of a new monetary unit at a rate of replacement. No confiscation of the money supply and prices, wages and financial liabilities fights are in the same proportion to the rate of replacement. This type of currency reform is much less effective.
BAD MONETARY SYSTEM
Making new monetary system :
- determination of new strategy and goals.
- determination of monetary instruments and instructions to use it better
- determination of ways that monetary policy influencing on economy
FEW BANKS
Inserting new banks in bank system. All banks that are operating in IOFCOMS are that are willing for new market.
BAD ECONOMY INDEX
- Excess business hours and bigger worker control
- Inserting more manufacturing industries
- Reduce industry technology
DEVALUATION
- Solving inflation
ECONOMY CRISIS
- reducing public expenditures
- reducing or increasing the amount of money in circulation, the increase or decrease in interest rates on loans the central bank to other banks in the country, their commitment to an increase or decrease in cash reserves in their funds, or the sale or purchase of government securities.
- selective financing or lending profitable economic activities and the like
And other in big crisis :
- limit in foreign and domestic trade
- prohibition of further price increases
- ban on wage increases
- ban on certain stock exchange traders
- temporary suspension of trade in the stock markets
When country get out of crisis can enter in IOFCOMS. Of course country needs to have Economy Index between 0 and 0,35 /0-35%/
MAS – country is on way to crisis, needs reforms given by IOFCOMS. National Bank and IOFCOMS implement reforms.
When country get Economy Index between 0-20 % can enter in IOFCOMS.
GOES – country is on way to great economy system.
Need to coordinate economy with IOFCOMS system. GOES countries governors are managing reforms of countries that need to enter in IOFCOMS. Together with GRES enter in The Supreme IOFCOMS Board.
Economy index is between 0-15%
GRES – country has great economy system
Need to coordinate economy with IOFCOMS system. GRES countries governors are managing reforms of countries that need to enter in IOFCOMS. Together with GOES enter in The Supreme IOFCOMS Board. IOFCOMS advices country to maintain it’s system. Economy index -- between 0-10%
ARTICLE 5 |country status in IOFCOMS|
Country status depends on economy status in that country :
- NO OPERATION STATUS
- LOW OPERATION STATUS
- MEDIUM OPERATION STATUS
- BIG OPERATION STATUS
This division is based on number IOFCOMS and National Bank operations.
NO OPERATION STATUS -- NOOS
Economies with Economy Index between 0-0,1 (0-10%). /GRES/
NOOS nations enter in The Supreme IOFCOMS Board.
NOOS nation’s governors are managing reforms of nations that want to enter in IOFCOMS.
IOFCOMS is just giving advices to maintain that status.
LOW OPERATION STATUS -- LOPS
Economies with Economy Index between 0-0,5 (0-15%). /GOES/
LOPS nations enter in The Supreme IOFCOMS Board.
LOPS nation’s governors are managing reforms of nations that want to enter in IOFCOMS.
IOFCOMS gives and controls execution of reforms that are leading to NOOS.
MEDIUM OPERATION STATUS – MOPS
This status we can divide to :
- lowing MOPS
- increasing MOPS
LMOPS – country economy is falling down. In that situation nation is being blocked of all nations and IOFCOMS with National Bank is taking measures to get stabile economy.
IMOPS – country economy is increasing. In that situation economy is being pushed by other nations. IOFCOMS with National Bank is taking measures to get LOPS and NOOS.
BIMOPS – countries that are entered from BOPS. IOFCOMS and National Bank are taking measures to make economy better.
BIG OPERATION STATUS – BOPS
This status we can divide to :
- lowing BOPS
- increasing BOPS
Economies with Economy Index bigger than 0,40 /40%/
Economy is in crisis and IOFCOMS with National Bank is taking measures to get better economy.
LOBOPS – country economy is getting better. IOFCOMS and National Bank are taking measures to get country out of BOPS
INBOPS – country economy is falling down, crisis is out of control. IOFCOMS and National Bank are taking measures to get country of crisis
ARTICLE 6 |IOFCOMS institutions|
IOFCOMS institutions :
- The Supreme IOFCOMS Board
- IOFCOMS Central Bank
- Central Bank Executive Board
- Central Bank’s Boards for every country
- Central Bank’s Installations in every nation
- IOFCOMS Installations in every nation
The Supreme IOFCOMS Board is formed by :
- Chair Nation
- 25 experts of economy
- NOOS nations
- LOPS nations
- IMOPS nations
Number of Board members is varies because of number of NOOS, LOPS and IMOPS nations.
Chair Nation – all IOFCOMS nations can be Chair Nation , but not nations that are in economy crisis. That nation manages work of The Supreme IOFCOMS Board. But she cannot bring decisions without majority of Board.
IMPLEMENTATION OF PROCEDURE
IOFCOMS and Central Bank installations in one nation that is in big crisis want to implement economic and technical currency reform :
This installations first send propose to National Bank to see if National Bank is agrees with these propose. National Bank agrees.
National Bank send propose to IOFCOMS Central Bank Board for their nation. IOFCOMS Central Bank Board for their nation agrees with National Bank.
Central Bank’s board for their nation is sending propose to Central Bank Executive Board.
Central Bank Executive Board agrees with propose and she is sending it to The Supreme IOFCOMS Board.
The Supreme IOFCOMS Board agrees and they are taking this measures.
This process should last for 1-3 days. After that The Supreme Board is sending approval to IOFCOMS and Central Bank installations in that nation. And this installations are taking that measures.
ARTICLE 7 |IOFCOMS influence on global economy|
IOFCOMS has a great influence in global economy because IOFCOMS is a part every economy.
IOFCOMS can influence on better country cooperation, expanding export and import trade, opening economies to world, to influence in good economies to help bad economies.
BODIES OF IOFCOM
The Supreme IOFCOMS Board
All GOES, GRES and IMOPS nations
The Chair Nation : APPLICATE
Nation that chair Supreme Board. Changes in for every week.
SECTOR FOR MONETARY SYSTEM AND MONETARY POLICY
Director : Dr. Andrea Emilie Harrington (Military Command)
- In charge for control of Monetary System and it's instruments
- Determines and implements Monetary Policy
SECTOR FOR FISCAL SYSTEM AND FISCAL POLICY
Director : APPLICATE
- In charge for control of Fiscal System and it's instruments
- Determines and implements Fiscal Policy
SECTOR FOR PAYING SYSTEM, CONTROL OF BANKS AND FINANCIAL STABILITY
Director : APPLICATE
- In charge for Paying System, Control of Banks and Financial Stability
- Upgrades and proposes paying systems, trying to low gray economy
- Control of Bank System, proposes reserves of banks, determines and draws new banks in IOFCOMS system
- Maintain Financial Stability, trying to excess surplus, an lows deficit if he exists
SECTOR FOR NATION COORDINATION AND RELATIONS
Director : APPLICATE
- Adjusts Monetary, Financial, Paying and Fiscal systems between nations
- Proposes new projects to nations in which they will cooperate and make more money
- Support and upgrades nation cooperation
WORLD CENTRAL BANK
Governor: Shun-li Wei (Togeria)
Leads IOFCOMS Bank. Expert in Economy
He is in charge for :
- Currency Stability
- Refilling proposes that proposed by Central Bank’s Boards for every country and decide about it with Central Bank Executive Board
- Provides Monetary, Fiscal and Paying system stability with Executive Board
- Controls inflation, key interest rate, reserves with Executive Board
- Control whole Monetary, Economic, Paying and Fiscal System
WORLD CENTRAL BANK
Vice Governor : Evgeny Elgar (Recon Empire)
- Advises Governor
- Same like Governor, but he cannot do anything without Governor approval
Secretariat
- Chief Secretary : APPLICATE
- Leads Central Bank Administration
- Provides cooperation between Central Bank's Departments
- Provides cooperation between Central Bank's Installations in every nation
- Provides cooperation between Central Bank and IOFCOM sectors
- Advises Vice Governor
- Lead Central Bank's public relations
- Secretary Adviser : APPLICATE
- Advises Chief Secretary
WORLD CENTRAL BANK
Chief of Operations : APPLICATE
- Lead and Implements Monetary, Fiscal, Paying Policy
- Controls nation cooperation
- Working with Governor, same jurisdiction, but need governor approval
- Provides cooperation between bank departments
- Tells and Advises Governor about new situation in market and other areas
APPLICATION
- Code: Select all
[b]Full name of nation :[/b]
[b]Name of the President[/b] :
[b]Name of Prime Minister[/b] :
[b]Number of population[/b] :
[b]Number of employed population[/b] :
[b]Capital City [/b]:
[b]Number of population in Capital City[/b] :
[b]Name of National Bank[/b] :
[b]Name of the Governor[/b] :
[b]Currency value per 1 dollar or euro [/b]:
[b]Number of Products per year[/b] :
[b]Choose way of implementation (mark with X)[/b] :
[b]ADVICE SYSTEM[/b] []
[b]5/10 SYSTEM[/b] []
[b]FULL ECONOMIC CONTROL SYSTEM[/b] []
[b]HABITUAL 4/10 SYSTEM[/b] []
[b]Any economic problem[/b] :
[b]How much money are you inserting in IOFCOMS Central Bank[/b] :
[b]Do you have any special message ?[/b]APPLICATION FOR DIRECTOR
- Code: Select all
[b]Full name of nation[/b] :
[b]Name of the President[/b] :
[b]Name of Prime Minister[/b] :
[b]Number of population[/b] :
[b]Number of employed population[/b] :
[b]Capital City [/b]:
[b]Number of population in Capital City [/b]:
[b]Name of National Bank[/b] :
[b]Name of the Governor[/b] :
[b]Number of Products per year[/b] :
[b]Way of implementation[/b] (mark with X) :
[b]ADVICE SYSTEM[/b] []
[b]5/10 SYSTEM[/b] []
[b]FULL ECONOMIC CONTROL SYSTEM[/b] []
[b]HABITUAL 4/10 SYSTEM[/b] []
[b]Any economic problem[/b] :
[b]Economy Status[/b] :
[b]Name of sector that you want to be director[/b] :
[b]Name of your candidate[/b] :
[b]About him[/b] :
[b]Knowledge about that sector[/b] :
[b]Your propositions for upgrading that sector[/b] :
[color=#FF0000][b]WARNING :
These positions and this organization is very serious. If you do not have knowledge or you are not active or you do not have ideas for implementing new systems and ideas in that sectors do not applicate. You have to be active every day, discuss about situations, changes of market, currency ...[/b][/color]
[b]So do you promises that you will respect all these terms ?[/b]
[b]How often you are active on NS ?[/b]
[b]Do you have any special message ?[/b]DONATION
- Code: Select all
[b]Name of Nation[/b] :
[b]How much are you donating ?[/b]AID
- Code: Select all
[b]Name of Nation[/b] :
[b]Reason ?[/b]
[b]Aid worth ?[/b]
MEMBERS
IOFCOMS CURRENCY STATUS
Soon we will form official IOFCOMS currencyIOFCOMS ECONOMY INDEX
E∞ = 0,02 NES = 2 %IOFCOMS BUDGET STATUS
4 783 610 000 000 NSD
