Abstract for: From Debt Money to Public Money System -- Modeling A Transition Process Simplified
In the book ``Money and Macroeconomic Dynamics'' by this author, our current economic system, being dubbed as debt money system, is shown to be currently facing systemic failures of financial and debt crises, and, as its alternative system, a public money system is proposed. Yet, a transition process from the debt money system to the public money system has been left unanalyzed, though vehemently called for by those who wish to implement the alternative economic system. Under the situation, this paper discusses its transition process by constructing a simple macroeconomic model based on the accounting system dynamics. It turns out that this model can briefly handle main features of debt money system, in 8 steps, that cause ``booms and depressions'', debt accumulation and failures of recent quantitative easing finalcial policy. It then offers a transition path to the public money system in 6 steps. These analyses are carried out by focusing on the behaviors of monetary base and money supply as these rationales are laid out in the above book.