History is replete with examples of the inevitable failure of paper money systems, from our own founding days, to inter-war Germany, to the monetary crisis of 1970s Latin America.
Actually, this Western-imposed economic malpractice is fast turning a monetary crisis into a solvency crisis that could endanger otherwise salvageable companies and financial institutions-and, more to the point, cut off our own expansion.
Although not linked in monetary union the crisis spread like wildfire and other regional currencies and equity markets slipped.
In many countries short-term interest rates are near zero and in a banking crisis monetary policy works less well.
It was "ready to act" with the Outright Monetary Transactions for the crisis economies last summer - with miraculous consequences for European financial markets.
He's admitting that in the wake of a financial crisis, monetary policy alone is unlikely to revive the economy, or at least not without some help.
Instead, excessive hype and public second-guessing by the policymakers have created a crisis atmosphere around monetary policy.
Meanwhile in Westminster Hall there are a series of short debates starting from 9.30am with one on the International Monetary Fund and the Eurozone crisis, led by the Conservative John Barron.
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"Moreover, changing the monetary policy framework during the crisis could harm trust in central banks and raise the suspicion that, de facto, there were other goals behind the change in strategy, " he said.
But you have to wonder whether it will also turn out to be another step towards a post-crisis world of monetary policy, where the nominal rate of inflation is no longer the target of choice.
The Fed has operated a super-easy and super-cheap monetary policy since the financial crisis started in 2007, but there is a growing expectation that it may be tempted to reverse its position sometime this year.
But if France now believes the answer to the current crisis is a monetary union where responsibility for debts are shared then it follows that a new set of political arrangements are required in which responsibility for economic decision-making is also shared.
What seems clear is that 2013 will prove a decisive year for the monetary orthodoxy that has dominated the crisis response in advanced economies.
The ADB's participation in International Monetary Fund-led bailouts of Crisis-hit countries South Korea, Thailand and Indonesia has raised concerns about the state of its coffers.
The financial crisis resulted from expansionary monetary policy and the resulting low interest rates, which led to excessive borrowing for investment in housing.
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Home prices rose 23 percent in the first 10 months of 2012 and have doubled since bottoming out in 2008 during the global financial crisis, the International Monetary Fund said in a report last month.
It judged that for now, expanding its loans to banks and securities dealers, and broadening the collateral it accepts from banks, addresses the crisis better than looser monetary policy would, though it may yet decide further rate cuts are necessary.
U.S. retail sales data, industrial output in China and the euro area, the ongoing Spanish banking crisis and possible further monetary policy easing in Japan will all be overshadowed by the Greek elections, said Nomura Securities analysts in a 16 page report on Friday.
That risk would amount to something only if deeper trouble in South Korea caused Japanese banks to fold, if Japan's authorities then failed to contain that crisis in their own monetary system, and (assuming the highest degree of contagion) if Western central banks then failed to protect theirs.
The financial crisis has led to such a widening of credit spreads and tightening of credit standards that aggressive monetary policy easing has not been enough to contain the crisis.
The other major cause of the financial crisis was the cheap dollar monetary policy of the Federal Reserve, reflecting the benighted policies of President Bush and his Treasury Department.
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His public confession of fear that the monetary union would inevitably produce an economic crisis not only cost him his job, he says, it also cost him his pension, and he was barred from his office even before his dismissal was official.
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The original cause of the Icelandic crisis was a combination of inappropriate monetary policy and an outsized banking system.
In short, not only has monetary policy been effective during the current financial crisis, it has been even more potent than during normal times.
The latest news headlines coming out of the European Union sovereign debt crisis included rumors that the International Monetary Fund may provide a bailout package for Spain.
Especially since the 1997 Asian financial crisis, in which the International Monetary Fund demanded high interest rates to bail out banks, developing countries have stocked up on reserves for fear of losing their national economic sovereignty.
Finally, the Fed is laying the groundwork for the next financial crisis, with out of control monetary policies creating a ticking inflation time bomb, and the resulting contractionary monetary tightening when the Fed decides the inflation is getting out of hand.
Meawnile, EM equities benefited from G4 monetary easing in the aftermath of the global financial crisis as stronger growth prospects attracted inflows from the developed world.
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They believe in fact the US economy was so busted by the banking crisis of 2008 that only a further monetary and fiscal stimulus will revive it.
Hubert Neiss, director of the Asia and Pacific Department of the International Monetary Fund (IMF), forecasts that most Crisis-hit economies would bottom out in the first half of 1999.
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