The economy we have is inherently unstable. It will always tend towards inflation or recession. Every economist knows the reason for that: all variables in the economy are interdependent. That is to say, all influence and are influenced in turn by all others. That makes the economic system intrinsically chaotic as a system: it is incapable of a stable equilibrium. When economists run their vaunted ‘models’ they assign values to one or more variables to make them ‘independent’.

Since the Great Depression we have sought to use, first (under Democrat ideology), the central government then, beginning in 1980 (under Republican ideology), the central bank to keep the worst from happening to the economy as a system. Not surprisingly, with the central bank in charge of the economy the interests of the financial sector have been more and more strongly identified with the best interests of the economy as a whole.

One obvious solution is to make money, the most important single variable in the economy, an ‘exogenous’ variable. That is, the amount of money created would be determined by some variable outside the economic system.

I have developed a paradigm for accomplishing that. It can be thought of as a kind of permanent ‘quantitative easing', but with built-in protections against inflation. The amount of money (as currency) that would be created would be determined by demographics--and only that.

The result: the existing economy would become stably self-regulating, with no unemployment or poverty (at any level of total output). We could at the same time use the same process to fund all government (from central to local)--at the current per capita rate of total government spending--without taxes or public debt. With demographics governing, passively but effectively, total output, sustainability would be increased.

All of that would be accomplished without imposing any cost on employers, without having to redistribute anything, without imposing any limit on income/wealth, and without requiring people to act any particular way. Otherwise, there is little to recommend my immodest proposal.

If curious, "Permanent 'Quantitative Easing'," here in Medium (but not behind the paywall), is a brief ("4 min read") introduction to the idea with links for more about it.