The system will not be reformed from within by criticizing its weaknesses. The system is changed when a new structure is created that renders the old structure obsolete. Only a new working model can challenge an outdated one.
The 2008 financial crisis has demonstrated that there is something inherently wrong with the way economic models are applied today. The next 40 years will bring even bigger challenges that we are not prepared to face. So called “modern economic theory” was conceived over 80 years ago, when production and banking methods were extremely slow. Electronic transfers, nanosecond trading, virtual speculation and current technological disruptions are quickly rendering existing theory obsolete. The world is in need of fresh ideas that are less focused on taking “sides” (we are not in a Star Wars movie, there is no good or bad side, only valid or obsolete models) and more concerned with offering practical solutions to the global challenges we face today. Join the “Smart Economy” Project and help shape the next wave of modern economic thought. Scholars from all social sciences are welcome. This goal can only be achieved by coordinated collaborative research.
To join the project send an email to email@example.com with a brief bio.
Using crowd sourcing as a method to lay the foundations of 21st century economic models. This effort includes independent research and validation from several disciplines to ensure these models deliver a system that meets the following objectives:
- 1. Revising and updating fundamental assumptions about markets conditions:
• Including speed of money, money multipliers, relationship between IS/LM curves and GDP, savings and investment, international balances.
• Identifying new sources of currency leakage such as speculative electronic trading, virtual currency and synthetic instruments, understanding their effects on microeconomics models
• Revising monetary policy objectives based on modern challenges (i.e. achieving desired interest rate instead of achieving certain minimum living standards or improvement of living conditions)
2. Incorporating big data into economic modeling:
• Identifying public sources, correlations of aggregate personal banking to macroeconomic events, and determine usability to formulate practical macroeconomic models to solve specific problems.
3. Diminish the exposure of basic needs to systemic risk caused by:
• Financial speculation
• Climate Change
• Technological Disruption
4. Maintaining flexibility for upwards mobility and creation of short and long term wealth
5. Replacement of “unlimited growth” assumptions for a more environmentally realistic approach to maintaining employment and a civilized societal structure