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Gisellian demurrage currency

Summary:
Dr. Keen, I am won­der­ing if you have ever seri­ously con­sid­ered issuance of Gisel­lian cur­rency for coun­tries fac­ing unplayable debt (all of them, as far as I know). The scheme I am imag­in­ing would have these govts pay­ing off bonds due with G-cur­rency. Bond­hold­ers would then, ASAP, spend it on real items in the econ­omy, where it would even­tu­ally end up as wages, where work­ers would spend it, ASAP, on taxes and con­sumer goods. The demur­rage, say 12%/year (= 12 x 1% stamps)  would give this cur­rency an annual veloc­ity of at least 12 since any holder of the cur­rency would want to spend it before each month-end tax stamp would be due. Of course, any debt financed cur­rency would have a veloc­ity of less than 1, since that is the money def­i­n­i­tion of debt.

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Dr. Keen,

I am won­der­ing if you have ever seri­ously con­sid­ered issuance of Gisel­lian cur­rency for coun­tries fac­ing unplayable debt (all of them, as far as I know).

The scheme I am imag­in­ing would have these govts pay­ing off bonds due with G-cur­rency. Bond­hold­ers would then, ASAP, spend it on real items in the econ­omy, where it would even­tu­ally end up as wages, where work­ers would spend it, ASAP, on taxes and con­sumer goods.

The demur­rage, say 12%/year (= 12 x 1% stamps)  would give this cur­rency an annual veloc­ity of at least 12 since any holder of the cur­rency would want to spend it before each month-end tax stamp would be due.

Of course, any debt financed cur­rency would have a veloc­ity of less than 1, since that is the money def­i­n­i­tion of debt.

Yours,

War­ren Raft­shol

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