jipsom
Nash's points this out, and then proceeds to propose a different view that alludes to a creative solution.
>There is a problem for the issuer of a currency, whether in coinage, paper, or electronic form, that if this currency (or money) is too good, then it could be exploited by all sorts of parties and interests that might simply wish to safely deposit a store of wealth or even to conservatively invest some assets for future good value.
>…under extreme conditions the currency issued by a state could be exploited by parties not of that state as a sort of “safe-deposit box” on which they would not need to pay any rental fees or fees like those paid to the managers of mutual funds for investment.
But there is this realization by Nash that is relevant (this version: http://www.jstor.org/stable/1061553) :
>If the value trend of a currency is such that a natural interest rate is not negative, then it is not an unattractive task for a central currency authority to mint or print the physical currency that would circulate. Then the issuer of currency would be partially in the position of a borrower not paying interest on borrowed money.
And so:
>But, simply to improve the conditions under which agreements regarding long-term lending and borrowing would be made, a money would be more or less equivalently good if it had a completely steady and constant rate of inflation. Then this inflation rate could be added to all lending an borrowing contracts. Hence, the problem of a money that would be too good is avoidable.
In regards to inflation targets he remarks:
>…the possible area for evolution is that if, say, an inflation rate of between 1% and 3% is now considered desirable and appropriate in Sweden, then, if it is really controllable, why shouldn’t a rate between 1/2 % and 3/2 % be even more desirable?
It is quite interesting to think of what asymptotically ideal money might be in regards to bitcoins inflation schedule which 1/2's every four years until ultimately there is no inflation in regards to money supply.
>So here is the possibility of “asymptotically ideal money”. Starting with the idea of value stabilization in relation to a domestic price index associated with the territory of one state, beyond that there is the natural and logical concept of internationally based value comparisons.
>The currencies being compared, like now the euro, the dollar, the yen, the pound, the swiss franc, the swedish kronor, etc. can be viewed with critical eyes by their users and by those who maybe have the option of whether or not or how to use one of them. This can lead to pressure for good quality and consequently for a lessened rate of inflationary deprecation in value.
My understanding: https://thewealthofchips.wordpress.com/2015/07/09/the-totali...
A summary: https://thewealthofchips.wordpress.com/2015/07/12/a-general-...
I've put together the best and most relevant quotes I could in relation to emerging economics. But otherwise there is nothing put together.
Ideal Money the 8 page lecture is the real treasure but its very dense if you really go into the meaning of everything.
Whats most significant and interesting here is that he came up with the concept of ideal money in the 60's when he was labelled paranoid delusional and fled to Europe.
The current leading implementation is "ethereum"
>Money can be recognized as a technological development comparable to the wheel and of similar antiquity.
Nash proposes we can use science and reason to rationally evolve the circumstances and underlying tech that is money.
There is a specific paragraph in which he explains Keynesian banking is central banking.
He doesn't say he doesn't like printing money, he notes the relationship between supply and the quality. And that by controlling supply you can control quality.
There is no rigorous model for your eyes but if you know ANYTHING about this mans work you could be rest assured that he is thinking of something incredibly accurate and technological.
Here is his basic concept for a network of computers designed as a future ai system that we haven't reached yet: http://web.math.princeton.edu/jfnj/texts_and_graphics/Main.C...
Nash designed that in the 50's
In Ideal Money Nash proposes that the advant of an electronic money in the form of a stably issued money supply will asymptotically take the power out of governments and central banks to print money.
You sir, are simply oblivious to reality.
Read it again!
Btw Nash's solutions and triumphs in game theory from 70 years ago are MASSIVE contributions to not only economics but nearly all sciences: http://www.eecs.harvard.edu/cs286r/courses/spring02/papers/n...