Calibrated Basic Income
Basic income & full output policy
Traditionally, central banks and governments have managed their 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 an employment-oriented approach. By instead targeting full output for consumers, via public sector debt expansion, policymakers may better activate the economy's real productive potential.
This paper briefly summarizes Calibrated Basic Income (CBI) as a key fiscal policy lever for affecting such a transition.
Full output response to exposure-risk crises
This essay elaborates on the prospect of basic income calibration in a contemporary context, accounting for full employment policy and 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 bridge the gap between full employment and full output perspectives on policy.