Sustainable Credit And Interest Rates

TL;DR

This paper explores a modified credit and debt system that aims to sustain economic growth while reducing financial instability inherent in current monetary systems.

Contribution

It proposes a new credit system design that maintains credit expansion capabilities with enhanced stability features, addressing systemic risks.

Findings

A proposed system reduces financial instability

Maintains credit expansion capabilities

Aligns with sustainable economic growth

Abstract

With negative growth in real production in many countries and debt levels which become an increasing burden on developed societies, the calls for a change in economic policy and even the monetary system become louder and increasingly impatient. We research the consequences of a system of credit and debt, that still allows for the expansion of credit and fundamentally retains many features of the present monetary system, without the instability inherent in the present system.