Stephen Yearwood
2 min readJul 24, 2020

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I fully and completely agree that the soundness of money is determined by how easily its supply is manipulated. My Master's thesis included a summary of the academic discussion of 'neutral money'. I have come to understand that the economic essence of that concept is to achieve a supply of money that would be truly exogenous, i.e. not only totally independent of all other economic variables, but utterly free from any intervention by any institutional entity.

To cut to the chase, I have developed a monetary paradigm that can be applied to the existing economy that would make the supply of money (as currency) truly exogenous. The supply of money would be huge, but absolutely limited.

The same process could be used to fund government (at all levels, from central to local) without taxes or public debt while putting government on a permanent budget (set at the current per capita level of total government spending). [Whether taxes or public debt would still be allowed and under what circumstances would have to be settled in the political process; under no circumstances, however, would there be a lender of last resort.]

Full disclosure: to prevent inflation money would have to be returned to its point of origin, but people and businesses would retain pools of money (based on income) and (unlike taxes) no money would be collected from any person or business before it could be used for purchases or investment. That would make the supply of money fully self-regulating, which would in turn make the economy self-regulating. The means would not exist to engage in 'managing' the economy via fiscal or monetary 'policies'.

In the end, people are the most important consideration. Any society's economy must serve the needs of people, who are the society, not the other way around. This approach to supplying the economy with money would eliminate unemployment and poverty (at no cost to anyone, without redistributing anything) while increasing sustainability (without any additional regulations or any changes in behavior--because total output would ultimately be governed, passively but effectively, by demographics).

"A Call for a (Further) Central Bank Revolution" (here in Medium)

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Stephen Yearwood
Stephen Yearwood

Written by Stephen Yearwood

M.A. in political economy (money/distributive justice) "Please don't confront me with my failures/ I'm aware of them" from "These Days," as sung by Gregg Allman

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