Re:Central bank digital currency: the end of monetary policy...
by zubat on Wednesday July 27, 2016 @02:53AM
(#12171009)
Virtual worlds already deal in this level of centralization. It's not unprecedented and economists have gotten great data from studying those. They have persistent, naturally occurring interactions with real world macroeconomies via item trading. Long story short, it's absolutely within reach to reorganize finance to resemble game design. That doesn't mean it's risk free - but success is possible and even likely with due diligence.
Re:Central bank digital currency: the end of monetary policy...
by neffy on Wednesday July 27, 2016 @09:09AM
(#12172407)
No virtual world has loans, or a banking system. But I would totally support creating one that does and letting economists loose on that.
Re:Central bank digital currency: the end of monetary policy...
by damptowel on Wednesday July 27, 2016 @05:50AM
(#12171571)
> Another way to think about it is a bunch of complete maniacs being allowed to run experiments on the live production system without any testing.
Although hopefully it won't come to that.
You mean like NIRP and QE? -_-' Like you said, these guys live in an textbook economic fantasy world.
From an economics point of view, what they are essentially proposing is to modify the banking system so that it resembles their models.
Their models are stylised, highly simplified, and have to be massively "callibrated" in order to match economic observations at all, and even then can only usually do so between financial crashes. (The part of economics that analyses business cycles hasn't discovered the Nyquist theorem yet.)
The best guess at what would result of this, is all the problems of centralised control, and none of the advantages of the existing system. Another way to think about it is a bunch of complete maniacs being allowed to run experiments on the live production system without any testing.
Although hopefully it won't come to that.