Calibrated Basic Income
Basic income & full output policy
Traditionally, central bank and government policymakers manage economies 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 this employment-oriented approach. By instead targeting full output, via public sector debt expansion, policymakers may better activate the economy's full productive potential.
The following essay examines Calibrated Basic Income (CBI) as a key fiscal policy lever for affecting such a transition.