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Quantitative easing is an incomplete strategy that must be accompanied by the nullification of debt

2015-07-10

Compound interest as well as inflation grows exponentially with time, whereas other means to repay debt grow polynomially. For this and other, mostly political, reasons, debt without inflation is unsustainable. We suggest a discontinuous way to eliminate debt by nullifying it. This scenario is preferable to current central bank strategies of quantitative easing because it allows the disposal of debt without hyperinflation or bloated balance sheets.

📄 PDF Abstract BibTeX arXiv:1303.6183

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