Central banking exists because legislatures have a right to overrule and regulate. A rule requires transfer of power of attorney to the banking contract. The two re in conflict.
Regulation costs and risk are real accounts, real wedges in any firm or households. But currency banking does not work with wedges, and currency banking is meta stable, it will default to central banking as government applies risk to its endogenous currency account.
In other words, most constitutions outlaw a valid velocity equation, true hologram pricing not allowed, nothing left for the imagination numbers.
The real antidote is to recognize that this connection to law also implies the generational default. It is MMT, it defines the necessity of default during generational change. Death over rides the constitution, and we can have out Nixon moment.
Boomers, with ten years to go, have no counter argument, hey dunnit themselves. So, it becomes a tradition. We will hedge over the generation, each new generation knowing their right to default comes with reserves sufficient to handle their kid's right to default. Rather than panic, like the 70s, we get a bit of thrill, a time to see new forms of discretionary spending. A more comfortable impulse response.
Death over rules the constitution
Death is the final transfer of power of attorney. Hence, central bankers cycle around generations which become a dimension of symmetry. We should be hedging generational default, it balances the currency account.
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