Research Seminar of International Laboratory for Macroeconomic Analysis and Laboratory for Macro-Structural Modeling of the Russian Economy: Alexander D. Smirnov «Debt Oscillations and the Paradox of Money Creation»
Dear Colleagues,
International Laboratory for Macroeconomic Analysis and Laboratory for Macro-Structural Modeling of the Russian Economy invite everyone to join our research seminar on Thursday, June 6th, 2024 at 16:20 PM (Moscow).
Speaker: Alexander D. Smirnov, NRU HSE
Theme: Debt Oscillations and the Paradox of Money Creation
Resume:
Financial crises of 2008 and 2020, unprecedented liquidity issuance on a global scale, and continuously growing turnover of digital payments, have noticeably increased interest in studying money and debt together with their functioning in the modern economy. Understanding these processes have been going on in the context of interactions between the core social institutions of market and state, the importance of which was repeatedly underscored by Aristotle, R. Knapp, A. Mitchell-Innes, I. Fisher, J. M. Keynes, J. K. Galbraith, J. Tobin among many other prominent scholars.
This great scientific tradition had helped to approximate different periods of money and debt evolution either in a form of credit as a social accounting stereotype, or as a standard or specie (gold and silver). The “imaginary” or the “virtual” money, as it turns out, were not the latest inventions of the 21st century for their stable prototypes had functioned many millennia ago, although in technically primitive forms. In spite of similar borrowing conditions the process of the bank liabilities creation could have explained, for example, the paradoxical emergence of opposite consequences in the large debt repayment that had been ended up either as the King Edward III default or, over three hundred years later, as a creation of the successful precursor of a modern central bank.
The phenomenon of the “unlimited” ex nihilo money issuance has been known since the 16th century. The macro-financial modeling methodology allowed considering it as an “instantaneous” financial impulse in the creation of new monetary obligations. This process could be modeled formally similar to Dirac’s delta function. In the previous report (April 4th, 2024) the macrofinancial oscillator ODE was explained, and its solution was found by applying the Fourier transform. The corresponding Fourier transform of the impulse money issuance leads to the calculation of the Green's function revealing the fundamental reaction of the macro-debt market to a “typical” monetary impact. This method of solving the ODE made it possible to explain the macrofinancial oscillator behavior in general terms, as being formed under the influence of monetary and macroprudential policies.
Working language: Russian
Working regime: mixed, in person and online
Address: Pokrovsky Boulevard, 11, room T510
Link: https://us02web.zoom.us/j/82402139190
ID: 824 0213 9190
Looking forward to see you.