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Pure Money for a Sound Economy

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  • Schmidt, Sandra

Abstract

At present, the world-economy is exceedingly fragile. Debt levels of nations peak. Monetary assets increase, too, and concentrate in the hands of few. In this paper, I show that a mechanism at the root of today’s monetary system entails an inherently fragile economy. I simulate the consequences of this mechanism within a macroeconomic model. I motivate a new monetary system that gives money the role it should have: to facilitate complex interactions in a stable environment.

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  • Schmidt, Sandra, 2015. "Pure Money for a Sound Economy," Working Papers 0580, University of Heidelberg, Department of Economics.
    • Handle: RePEc:awi:wpaper:0580
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    1. Mr. Michael Kumhof & Mr. Jaromir Benes, 2012. "The Chicago Plan Revisited," IMF Working Papers 2012/202, International Monetary Fund.
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    More about this item

    Keywords

    Money; debt; banks and inequality. Reform of the monetary system; equity-based money.;
    All these keywords.

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