“Bob brought economic theory to the real world, both as a mechanism for understanding ‘how things work’ and then in the design of better institutions.”
Shrink the problem in place until one finds the congestion point, Insert standard trading pit, an auction, to get a Coasian price and Nash equilibrium sets in. This Nobel Banana was awarded to sandboxers, true to the core. We an automate most of their stuff.
And points to a barrier. The Fed cannot find taxes in this kind of auction environment. Implicit in all this stuff is the avoidance of Fed taxes and explosive growth of shadow banking. The Fed has a technology barrier. The Fed has any of three fundamentals that is stopping it in its tracks, tech is one, plus generational overlap and state imbalances. All three hitting all at once, as if the restructure is finding economies of scale. The good news. We are not busy carpet bombing rice farmers.
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