Calibrated Basic Income
Basic income & full output policy
This essay briefly summarizes the policy concept of a Calibrated Basic Income (CBI), and describes how it can bring an economy into a state of
full output for consumers.
Traditionally, central banks and governments have used monetary & fiscal policy to try to achieve a state of full employment, where the number of jobs available for workers is increased primarily via private sector debt expansion.
Consumer Monetary Theory (CMT) suggests that chronic problems such as poverty and cyclical recessions are best understood as unintentional byproducts of an employment-oriented approach. By instead targeting full output for consumers, via public sector debt expansion, policymakers may better activate the economy's full productive potential.
Full output response to exposure-risk crises
This essay elaborates on the prospect of Calibrated Basic Income in a contemporary context, accounting for exogenous shocks such as an exposure-risk crisis.
Questions about funding, implications for traditional monetary policy, revised perspectives on full employment, and ideal hibernation strategies are explored in greater detail.
This essay is a working paper which should be read only after acquiring basic familiarity with CBI and/or CMT. It is an early attempt to describe the difference between full employment and full output perspectives on policy.