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Elastic Cash

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  • Anup Rao

Abstract

Elastic Cash is a new decentralized mechanism for regulating the money supply. The mechanism operates by modifying the supply so that an interest rate determined by a public market is kept approximately fixed. It can be incorporated into the conventional monetary system to improve the elasticity of the US Dollar, and it can be used to design new elastic cryptocurrencies that remain decentralized.

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  • Anup Rao, 2023. "Elastic Cash," Papers 2301.04244, arXiv.org, revised Jan 2023.
    • Handle: RePEc:arx:papers:2301.04244
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    File URL: http://arxiv.org/pdf/2301.04244
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