Calibrated Basic Income
Basic income & full output policy
Most economies today are managed under a full employment monetary / fiscal policy paradigm, where high employment is pursued primarily via private sector debt expansion.
Consumer Monetary Theory (CMT) suggests that chronic macro problems such as poverty and cyclical recessions are best understood as unintentional byproducts of employment-oriented policy. By pivoting to a full output target, pursued primarily via public sector debt expansion, policymakers can better activate the economy's full potential.
The following essay examines Calibrated Basic Income (CBI) as a key fiscal policy lever for affecting such a transition.