Quantitative Balancing
Quantitative Balancing (QB) is a new framework for financial security, fiscal sustainability, and systemic stability. It aims to reconcile money, banking, and public accountability for the 21st c...
Bank Insolvency
Deposits are misclassified as bank liabilities, leading to bail-ins, bailouts, and systemic fragility.
Hidden Seigniorage
Private banks profit from public money creation, leading to fiscal inequity.
Regulatory Complexity
Basel III/IV rules strain banks with capital buffers, stifling productive lending.
Sovereign Debt Traps
Austerity or inflation are often used as tools to address fiscal gaps, leading to sovereign debt traps.
QB Summary
Quantitative Balancing aims to address the key problems plaguing the current monetary system, creating a more stable and secure financial system for all nations.
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Quantitative Balancing
Game Theory Approach
Table of Contents
01
Introduction
02
03
Game Theory
Quantitative Balancing
04
Benefits
05
06
Possible Outcomes
Conclusion
Introduction
Quantitative Balancing (QB) is a financial reform strategy that uses game theory to restructure the financial system and improve its stability.
03
This approach involves centralizing seigniorage and restructuring bank liabilities, leading to a win-win scenario for all parties involved, including banks, depositors, and the state.
Game Theory
Game theory helps us understand how strategic interactions between different entities can affect outcomes and predict equilibrium.
04
Nash Equilibrium
A scenario where no player can improve their outcome by unilaterally changing their strategy.
Strategic Interactions
The actions of each participant can affect the outcomes of others.
Key Insights
Scenario
Three players are involved: banks, state and customers
05
Quantitative Balancing aims to restructure the financial system by centralizing seigniorage.
Quantitative Balancing
It involves restructuring bank liabilities, adopting new seigniorage mechanisms, and centralizing control over seigniorage.
The idea is to create a more stable and sustainable financial system by addressing weaknesses in existing structures.
06
Benefits
Quantitative Balancing offers benefits for banks, the state, and depositors, leading to greater stability and confidence in the financial system.
Improved financial strength, regulatory compliance, access to capital markets, and a competiti...
Banks' Benefits
State's Benefits
Optimized state revenue, reduced tax pressure, a balanced budget, and improved money supply ...
Fund protection, elimination of bank insolvency risk, transparency and legal certainty, bail-in risk redu...
Depositors' Benefits
Key Benefits
07
Possible Outcomes
If the system adopts Quantitative Balancing, all players benefit from a positive-sum game.
Banks experience increased customer confidence, attracting more deposits and improving their reputation.
The state benefits from additional revenue generated by seigniorage credits, leading to economic stability.
Conclusion
By implementing QB, the financial system can achieve greater stability and efficiency, creating a win-win scenario for all stakeholders.
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This approach promotes cooperation, transparency, and accountability, while providing a more sustainable and resilient financial system.
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