Distributed Liquidity: How Game Theory applied to Helicopter Money can solve Euro crisis - Softcover

Nosei, Alessandro

Softcover

ISBN 10: 1073656675 ISBN 13: 9781073656677

Publisher: Independently published, 2019

Synopsis

In Europe the current economic and financial tension is the product of an imperfect monetary structure in a system of asymmetric variables without the benefit of monetary autonomy and an automatic adjustment mechanism in the form of the exchange rate. This impedes the matching of supply and demand and thus prevents the efficient allocation of market resources. The Distributed Liquidity (DL) model proposes a new and unconventional instrument of monetary policy to counterbalance the rigidity caused by the absence of exchange rates amongst European countries. This instrument aims to boost the real economy, to reward virtuous countries, to help countries in difficulty, to neutralize localized deflationary pressure, to permanently accelerate the development of the entire Eurozone system, and to stabilize capitalistic economic cycles using a long-term anticyclical mechanism able to create the economic conditions to pursue and complete the process of European integration. The analyses and microeconomic and macroeconomic proposals in the DL model present an unconventional approach. Instead of analyzing the behavior of businesses and consumers ex post and proposing economic models to interpret them, Nosei starts from the assumption that monetary policy can be the primary motor creating basic microeconomic "action" from which we derive aggregate macroeconomic developments. Finally, beyond the mathematical formulation of the model, the concept of Distributed Liquidity opens up new threads of potential research, with interesting opportunities for developing classical economic theory.

Edition details

• Publisher: Independently published
• Publication date: 2019
• ISBN 10: 1073656675
• ISBN 13: 9781073656677
• Binding: Paperback
• Language: English
• Number of pages: 70
• Editor: Martino Luca
• Illustrator: Network GESTA