3 ms·

Debt-based bond-backed money is already ex-nihilio. UBI-backed money might exist and the monetary system would have been much simpler.

• gumby 7y ago
  > Debt-based bond-backed money is already ex-nihilio Every time you use a credit card you increase the money supply, though it is sterilized when you pay your bill at the end of the month (or when you default). Arguably it's not really ex-"nihilo" as there is economically valuable activity (extension of credit) which is paid for via interest. Increasing the money supply to match economic activity (as best it can be measured) prevents deflation, among other things, and debt is the tool used, surely better than simply running the presses.
  • anticensor 7y ago
    You would replace the interest ratio by resupply ratio (feeding expenditure taxes and income taxes for income exceeding UBI back into supply) in an UBI-backed monetary system. You could easily target zero inflation per capita in such a system.
    • gumby 7y ago
      Yes, this is a good idea. The current approach uses banks as the interface, hence the use of debt. Purely a mechanical artifact, not a moral issue as it is often taken by people fixated on microeconomics.