REVERSAL POINT
  • Home
    • Your Support
    • Privacy Policy
    • Terms of Use
    • Contact
  • Monetary Paradox
    • Monetary Wonderland
    • Shirakawa's Monetary Policy Paradox 1
    • Shirakawa's Monetary Policy Paradox 2
    • Minsky's Non-Neutral Money
    • Monetary Policy Paradox
  • Secular Cycle
    • Blog >
      • Bond Wave >
        • Monetary Regime Cycle and BitCoin
        • Paradigm Shifts in Monetary Regime along Bond Wave
    • Supra-secular rhythm
    • Secular Rhythm of Bond Wave >
      • Bond Wave Mapping 1: Paradigm Transformation in Interntional Monetary Regime
      • Bond Wave Mapping 2: Price & Inflation Cycles
      • Bond Wave Mapping 3: Private Debt Cycle
      • Bond Wave Mapping 4: Fiscal Cycle & Negative Real Yield Cycle
      • Bond Wave Mapping X: Political Cycle
      • Limited Gold Supply was a perennial problem for the Gold Standard: in search for Elastic Money and Scalability
  • Political Philosophy
    • Zeitgeist Zero Hour: Intro
    • Socrates Constitutional Cycle >
      • Socrates' Constitutional Cycle
      • Intrinsic value of Socrates Cycle
      • Contrast between Socrates vs Aristotle
    • Can we preserve democracy? >
      • Terminal Symptom of Democracy in Ancient World, Theoretical Views
      • Paradox of Equality & Aristotelean Paradox Management
      • Aristotelean Preservation of Constitutions
      • Contemporary Liberal Representative Democracy?
    • Old Contents >
      • Socrates' 5 Political Regimes
      • Socrates-Homer Hypothesis
      • Crassus & Trump: Socrates-Homer Hypothesis in Modern Context
  • Others
    • Price Evolution >
      • Oligopoly Price Cycle
      • Deflation >
        • Zero Boundary
        • Anecdote 1874-97
        • Deflationary Innovation
    • Innovation >
      • Introduction AI & ML & DL >
        • Chap1 ML Paradigm
        • Chap2 Generalization of ML
        • Chap3 DL Connectionism
        • Chap4 DL Learning Mechanism: Optimization Paradigm
        • Chap5 DL Revolution
        • Chap6 DL Carbon Footprint
        • Chap7 DL Underspecification
        • Chap8 CNN & Sequence Models
      • Map Risk Clusters of Neighbourhoods in the time of Pandemic
      • Confusing Blockchain >
        • Chapter 1: Linguistic Ambiguity
        • Chapter 2: Limitations in Consensus Protocols
        • Chapter 3-1: Disintermedition Myth-conceptions
        • Chapter 3-2: Autonomous Self-regulating Governance Myth-Conceptions
    • Environmental Distress >
      • Model Risk and Tail Risk of Climate-related Risks
  • Socrates' Constitutional Cycle
Click here for Your Support
This website is operated independently by Michio Suginoo. Your contibutions to support this web site are welcome. For your contributions, please visit "Your Support."


Archive:


Productions in 2015

Monetary Paradox
Minsky's Non-Neutral Money
Monetary Policy Paradox​
​Hyman Minsky elucidated paradoxical mechanism of modern money. Destruction and even evaporation of money are embedded in the very architecture of creation of money by its design. (Minsky's Non-Neutral Money)
Picture
CPI, asset prices (productive assets, real estate, land, etc.), securities prices, and commodity prices demonstrate different behaviours and cannot be managed at the same time by the conventional monetary policy alone. A successful monetary policy to control CPI can cause another problem with other price categories. Paradox is embedded in monetary policy. (Monetary Policy Paradox​)

Price Evolution
Oligopoly Price Cycle 1
Oligopoly producers conspire underproduction among themselves through collusion to raise price for their own benefit. Their own making of high price achieved during rising demand allows new entrants to establish their market presence. This leads to a new survival game to drive down the price. (Oligopoly Price Cycle 1) 

Deflation Series
Introduction of Deflation​
Picture
Before WWI, there were frequent deflation: deflation and inflation alternated each other. Since WWII, deflation disappeared from UK. This article briefs the history of inflation/deflation in UK along the transformation in monetary arrangement. (Introduction of Deflation​)

Zero Boundary​
In our modern fiat money world, deflation is a villain. To contain inflation, central bank can increase interest rates; to tackle with deflation, central bank faces its limit in reducing interest rates. Negative nominal deposit rates can divide economic reality between deposits in bank accounts and money hoard at home. While deposits are charged with negative deposit rates, money hoarded at home is free from charge. It could pose a risk for reduction in saving balance at banks. Zero boundary is a constraint for deposit rates under fiat money. Digital money can be an alternative effective solution to apply negative interest rate universally without bank run risk. However, sovereign entity might not like the idea ... (Zero Boundary​)
Anecdote 1874-97 ​
​​What can we learn from historical cases of deflation? 1874-97 deflation in UK was accompanied with high unemployment, international monetary integration, international productivity convergence, and development of cheaper foreign labour market. Can we see any parallel with the deflationary environment of our time? (Anecdote 1874-97)

Deflationary Innovation
Can innovation cause economic contraction?  Innovation and its productivity gain can trigger supply-driven deflation, which increases output. However, what would it be, if our jobs are overtaken by innovative technology? By accounting for net job loss, innovation can also indirectly trigger demand-driven deflation, which reduces consumption. This article explores negative economic impacts of innovation. (Deflationary Innovation)

​Copyright © 2015-2016 by Michio Suginoo. All rights reserved.

Proudly powered by Weebly