REVERSAL POINT
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  • 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

Monetary Wonderland

Monetary conditions affect our psychology. A change in monetary conditions can transform our collective social behaviours, dictating our perceptions about political economy. This is a simple statement. But, to capture what it means, it requires some explanations.

In my case, I learned this notion through my own real life experience in two extreme monetary realities—deflationary Japan (1998-2011) and inflationary Argentina (2011-2014). I witnessed that their opposite monetary conditions shaped very contrasting social, economic, and political behaviours between these two countries. My experiences are outlined in "Enter the Monetary Wonderland, Part 1: Deflationary Japan and Inflationary Argentina."

Moreover, through Japan's economic experience, I witnessed a pendulum-like cyclical nature of monetary reality: a debt-driven hype of the bubble economy during the second half of the 1980s; the bursting of the bubble in 1991;  thereafter, a prolonged period of deflationary stagnation, called 'Lost Decades.' Furthurmore, by the time the word, 'Japan,' became a universal synonym for deflationary stagnation, the Global Financial Crisis broke out in 2007. I lived through those two great transformations in monetary conditions and experienced the cyclical nature of our monetary reality. To illustrate the cyclical nature of our monetary reality, I run through the case of Japan in "Enter the Monetary Wonderland, Part 2: Cycle of Paradox."

In a way, we live in a ‘Monetary Wonderland’ that is a manifestation of a series of ‘feed-in/feed-back’ interactive dynamics between our collective behaviours and monetary reality. On one hand, a given set of monetary conditions can shape our particular collective behaviours; on the other, our collective behaviours can also transform our monetary reality.

Ever since, my inquiries about ‘Monetary Wonderland’ have grown and obsessed me to explore the dynamic interactions between monetary cycle and transformations in our political economy.
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