Saturday, 26 January 2013

"Improved Macroeconomic Control with Electronic Money and Modern Monetary Theory".

A working paper:

Abstract: This paper combines the concept of electronic money (no physical currency) with Modern Monetary Theory. It argues how electronic monetary systems offer a big step forward for macroeconomic control, among other things by giving a government new and potent steering tools. More specifically the paper discusses how one in an electronic money environment can easily curb an overheated economy – admittedly far from today's global situation – but a necessary topic all the same to convince people that running large and persistent government budget deficits in depressed economies, is not "irresponsible" and does not need to imply strong inflation in later economic boom situations.

Any reactions appreciated!
Trond Andresen.

Interesting! Trond, I think you must have got some of your inspriation from my evolving project of Transfinancial Economics. Electronic money is the key to the future understanding of economics. Ofcourse, TFE though goes alot further than your presentation because it most notably offers the possibility of gaining a highly accurate undertstanding of the economy itself in real-time. This, ofcourse, is revolutionary par excellence,and would spell the end of economics as we know it. Moreover, we would have a situation in which new money could be created WITH REAL CONFIDENCE where necessary electronically in such a way as to avoid serious inflationary consequences...rather than continually using "indirect" methods of taxation, and interest rates rises.

Above message from Robert Searle, the onsite bloger of The Economic Realms. (Relevant references will be included in my present "work in progress" "paper" shortly.

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