Bheemaiah The Blockchain Alternative

Rethinking Macroeconomic Policy and Economic Theory
1. ed
ISBN: 978-1-4842-2674-2
Verlag: Apress
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 262 Seiten

Gain an understanding of how finance and economics work today, and how the convergence of various technologies related to the financial sector can help you find solutions to problems, such as excessive debt creation, banks getting too big to fail, and shadow banking. This book offers sensible alternatives to outdated and incorrect dogmas, such as the efficient markets hypothesis and rational expectations theory. You'll also be introduced to universal basic income, the consequences of going cashless, why complexity economics needs to be understood and what kinds of tools and theories you'll need to redefine the existing definition of capitalism. While the book does discuss technologies and methods that are primed for our future, a number of references are made to economic history and the works of great thinkers from a different era. You'll see how the blockchain can be used to deploy solutions that were devised in the past, but which can serve as the antidote to our current economic malaises. You'll discover that what is required today is not an adaptation of the old theories, but a new methodology that is suited to this new era. Without undertaking such an endeavor, one will always be burdened with a definition of capitalism that is out of kilter with the evolution of our digital humanity. The Blockchain Alternative examines what would happen if we were to deploy this technology at the sovereign level and use it to create a decentralized cashless economy. What would this mean to monetary and fiscal policy, market structure and our current understanding of economics? More importantly would we need to change our current understanding of capitalism? And if we were to change our perceptions, what would the future version look like?  This book answers these questions, and analyses some of the most pertinent issues of our generation.   What You'll Learn Examine fractional banking, debt, and the financialization of assets
Gain a firm understanding of the 'too big to fail' theory, smart contracts, and Fintech
Review economics and agent-based modelling
Use the blockchain and complexity economics to rethink economics and capitalistic systems
 
Who This Book Is For
The primary audience is bankers and other finance professionals, policy makers, and students of finance and economics. The secondary audience is anyone seeking a deeper understanding of the current financial system, the blockchain, and the future of capitalism.
Praise for The Blockchain Alternative'...a bold and pioneering effort to make sense of how emerging digital technologies might be used to reshape public policies, including macroeconomic and social policies, in basic ways.  Everyone interested in this very important emerging question should read this book.'-       Dr. Sanjay G. Reddy, Associate Professor of Economics at The New School for Social Research and Research Associate of the Initiative for Policy Dialogue at Columbia University.'Writing on blockchain today is analogous to writing about the internet, before it became massively distributed. The book pushes us to think the quantum leap that this technology may infer to our capitalist model, if scaled at the pace described by the book. Written with the support of strong empirical models but also with an open mind towards the future, this is a must read for anyone interested in becoming part of the new economic infrastructure'-       Dr. Mark Esposito, Harvard University's Division of Continuing Education & Judge Business School, University of Cambridge'With a rigorously balanced dosage of versatility and rationale we are allured into a multifaceted trajectory across ingrained yet functionally arcane economic models, only to plunge into a conceptually revolutionary realm which irreversibly stimulates us into envisaging a fascinating novel scheme of world order'.       -       Ioana Surpateanu, Political Adviser to the European Parliament'If there is only one book that I am reading on how blockchain is going to change our lives, it will have to be 'The Blockchain Alternative.'-       Dr. Terence Tse, Associate Professor of Finance, ESCP Europe Business School


Kariappa Bheemaiah is a researcher, visiting lecturer, and technology consultant based in Paris. His articles and interviews on the Blockchain and the effects of technological change on society have been published in Harvard Business Review, WIRED magazine and Les Echos, and elsewhere. Kary is currently the head of research at Uchange, a digital transformation consultancy, a research associate with Cambridge Judge Business School, a visiting lecturer at ESCP Europe and GEM, and a mentor and blogger at StartupBootCamp. Prior to this, he worked as a market intelligence analyst and financial controller in a number of international companies and also as an economic researcher for an EU project. He is also a public speaker and gave his first TEDx Talk, 'The evolution of currency,' in 2014. He will be giving his second TEDx Talk, 'Rethinking Capitalism with the Blockchain,' in May 2017.

Autoren/Hrsg.

Bheemaiah, Kariappa

Inhaltsverzeichnis

1;Contents at a Glance;5
2;Contents;6
3;About the Author;10
4;About the Technical Reviewer;11
5;Acknowledgments;12
6;Introduction;13
7;Chapter 1: Debt-based Economy: The Intricate Dance of Money and Debt;17
7.1;An Obsession with Cash;18
7.2;Fractional reserve banking and debt-based money;20
7.3;Our Waltz with Debt;26
7.4;How much debt is too much debt?;33
7.5;Shadow Banking and Systemic Risk;35
7.6;Rethinking Debt-based Capitalism;38
8;Chapter 2: Fragmentation of Finance;41
8.1;The Fuzziness of Financialization;41
8.2;Financialization and the Innovation of Risk;44
8.3;TBTF;46
8.4;#Ending TBTF10;49
8.5;A new way of looking at fragmentation;57
8.6;Sharding;60
8.7;Using the Skeleton Keys;76
8.8;The Enemy of my Enemy is my Friend;81
8.9;Challenges and Solution Pathways;83
8.9.1;Digital Identity and KYC;83
8.9.2;Scalability;97
9;Chapter 3: Innovating Capitalism;99
9.1;Reviewing the Current Definition of Capitalism;99
9.2;A Changing Market Structure;108
9.3;Lending and Payments;110
9.4;Trade Finance;114
9.5;Regulating Regulation;121
9.6;Accounting Jiggery Pokery;122
9.7;Policies for a cashless future;128
9.8;Centralized Government Money Issuance and the Cashless Economy;135
9.9;Fiat currency on a Blockchain;139
9.10;Multiple currencies in a cashless environment;146
9.11;One digital money to rule them all—Fiscal Policy instead of Monetary Policy?;152
9.12;Helicopter Drops and Universal Basic Income;156
9.13;Examples of UBI;162
9.13.1;Alaska;163
9.13.2;Mincome, Canada;163
9.13.3;Otjivero, Namibia;163
9.13.4;Funding the Deployment;164
9.14;Making policies based on probabilities;164
9.15;Notes;167
9.15.1;CoCo bonds and the Blockchain;167
9.15.2;Scalability;168
9.15.3;Sarbanes-Oxley Act;169
9.15.4;Multiple Currency Mechanisms;169
10;Chapter 4: Complexity Economics: A New Way to Witness Capitalism;171
10.1;Technology and Invention: A Combinatorial Process;172
10.2;Economic Entropy versus Economic Equilibrium;179
10.3;The Mathematical Wizardry of Equilibrium Economic Models;184
10.4;An introduction to Complexity Economics and Agent Based Modelling;198
10.4.1;Dynamics;203
10.4.2;Non - Linearity;203
10.4.3;Power Laws;204
10.4.4;Networks;205
10.4.5;Feedback loops;207
10.4.6;Path Dependence;208
10.4.7;Emergence;208
10.4.8;Agents;209
10.5;Complexity Economics Models and Agent Based Computational Economics;212
10.5.1;Designing an ABM Simulation;215
10.5.2;Specifying Agent Behaviour;216
10.5.3;Creating the Environment;217
10.5.4;Enacting Agent Interaction;218
10.6;ABCE models in use;220
10.6.1;Kim-Markowitz Portfolio Insurers Model;220
10.6.2;The Santa Fe Artificial Stock Market Model;221
10.6.3;The El Farol Problem and Minority Games;223
10.6.4;Recent developments with ABCE models;227
10.7;Putting it all together;230
10.8;Conclusion;232
10.9;Some Final Notes;233
10.9.1;A brief history of computing;234
10.9.2;Neuroplasticity;236
10.9.3;Types of Macroeconomic Models;237
11;Appendix A: Bibliography and References;242
11.1;Bibliography;242
11.1.1;Chapter 1;242
11.1.2;Chapter 2;244
11.1.3;Chapter 3;247
11.1.4;Chapter 4;250
11.2;References;253
11.2.1;Chapter 2;253
11.2.2;Chapter 3;254
12;Index;255