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One of my friends at the NY Fed sent me this article series from the World Bank on the programmability of money. By digitalizing money, we might see a new technical feature made possible that forces people to spend their money before a given time.
Beyond the interesting content of these articles, I think the trend we are currently seeing is quite interesting. The dynamics regarding transactions and the nature of money are evolving: just this morning, Brazil's president was calling for BRIC'S move away from the dollar's dominance. Be it from the falling hegemony of the USD to the changing nature of legal tender, the upcoming years will be fruitful in financial opportunities.
From a modeling perspective, how would one model the value of this programmable money and its effects on the economy? Risks associated?
I thought I would share this as it is quite interesting and relevant to the quant space; enjoy the read!
blogs.worldbank.org
blogs.worldbank.org
Beyond the interesting content of these articles, I think the trend we are currently seeing is quite interesting. The dynamics regarding transactions and the nature of money are evolving: just this morning, Brazil's president was calling for BRIC'S move away from the dollar's dominance. Be it from the falling hegemony of the USD to the changing nature of legal tender, the upcoming years will be fruitful in financial opportunities.
From a modeling perspective, how would one model the value of this programmable money and its effects on the economy? Risks associated?
I thought I would share this as it is quite interesting and relevant to the quant space; enjoy the read!
Expiring money (Part I)
Expiring money, one whose value falls to zero after a specific date, is a potential monetary policy tool.
Expiring Money (Part II)
Expiring money conflates monetary and fiscal policies into one single instrument — as helicopter money does.