 A New Monetary Policy for the Digital Age?Livio Stracca ()
Chapter Chapter 6 in Redefining the Monetary Standard in the Digital Age, 2025, pp 129-149 from Springer Abstract: Abstract The chapter focuses on the influential work of economist Irving Fisher, highlighting his contributions to modern monetary economics and his lesser-known but significant ideas. Fisher, often overshadowed by contemporaries like John Maynard Keynes, introduced key concepts such as the Fisher equation, which remains fundamental in understanding interest rates and inflation. In particular, the chapter discusses Fisher's idea of a “compensated dollar,” a unit of account designed to maintain constant purchasing power by adjusting its value against a basket of goods and services. This concept aimed to stabilize the currency and mitigate inflation’s impact, and it is a promising idea that sits well with digital forms of money, but also with significant drawbacks. Although Fisher’s ideas faced criticism, particularly his advocacy for full reserve banking, they have resurfaced in discussions about digital currency and economic stability. Keywords: Irving fisher; Compensated dollar; Monetary policy; Inflation; Full reserve banking (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-89840-2_6 Ordering information: This item can be ordered from DOI: 10.1007/978-3-031-89840-2_6 Access Statistics for this chapter More chapters in Springer Books from Springer |
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