I think $80 would be the upper limit on the Euler path through.
The reformed Fed path or the true Green path would lead to $80 quite a bit more, more often, and we might see $90. We expect little impulse response form under the fed reformed path, quantization noise.
The pure Green want to know how much of the pil price is provably a public nuisance to injured parties. Like,, any smart lawyer in Fresno could easily prove the sidewalk crowd own the first piece of the gas tax. We have the provably injured, sidewalk users.
If we take the reformed Fed path, nothing really happens, at first. The Fed's default capability is power, and when everyone expects it, it is least deployed. But the Fed will, at time, let a little more out than expected and will cause price volatility. The Euler path likely has a deflationary bias, frankly. The default plan gives a potential 2% inflation, but higher expected volatility. The new central bank, itself, is highly efficient and gains in the currency account, an offset to the default losses. The question is how to frame that in the contract. Efficiency gains, endogenous to the Fed, and split between bonuses and patent fees to Congress? Otherwise we carry them on the currency account and expect medium term price neutrality. I dunno here. It just occurred to me that this is an issue, endogenous efficiency gains; especially for a well run monopoly.
In the natural state of affairs, starting this thing up, the pit boss is likely to make a lot of first mover loans, covering them with its own deposits, making the pit boss rich. But all it has is the currency account. In fact, that is much of the unpriced productivity we are expenseing. Much of the productivity gains are still held up in the tech industry, and insurance had accumulated on the past. All of the pricing capability introduced, especially to large government institutions, pay off. Their credit capability goes up wen they manage an account to match their ongoing budget. Some agencies motivated to realistically cash flow balance. Better credit ratings, the central bank generally first in line for the biggest chunk, and it will have to discharge those gains with defaulted treasuries, under contract. Else bit error is out of bounds. It is n the contract and Congress will have a hard time escaping due to spectral containment (we bought them off).
In the natural state of affairs, starting this thing up, the pit boss is likely to make a lot of first mover loans, covering them with its own deposits, making the pit boss rich. But all it has is the currency account. In fact, that is much of the unpriced productivity we are expenseing. Much of the productivity gains are still held up in the tech industry, and insurance had accumulated on the past. All of the pricing capability introduced, especially to large government institutions, pay off. Their credit capability goes up wen they manage an account to match their ongoing budget. Some agencies motivated to realistically cash flow balance. Better credit ratings, the central bank generally first in line for the biggest chunk, and it will have to discharge those gains with defaulted treasuries, under contract. Else bit error is out of bounds. It is n the contract and Congress will have a hard time escaping due to spectral containment (we bought them off).
But, sooner or later the boomers die, and we notice their dying quite a bit sooner than when it starts, we hedge their death. Always the same, for one side, too soon, for the other, too late.
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