Thank you for this analysis! As usual, a clear-eyed systemic evaluation.
It does raise a question about whether desirable structural reinforcement and stability is equally compatible with a less authoritarian political system. Is a drift toward inequality and resultant regulatory capture intrinsic in all societies that aspire toward individual self-determination as a societal value? Piketty’s work seems to suggest this, but it is only a piece of a larger systemic analysis.
There are examples in Europe of third-way systems that seem to strike a better balance than the US, but it is unclear how one could incentivize a (peaceful) shift towards that balancing point for the US, given it’s current reality as a starting point. The game theory involved is sufficiently high-dimensional that the existence of even a piecewise-stable pathway can reasonably be questioned. And given the inordinate weighting of the US on the world economy (eg. exorbitant privilege of the dollar), that is destabilizing not only locally, but worldwide.
Do you have thoughts on assessing and engineeering stability not only on systems at a fixed moment in time, but also smooth systemic transitions resulting from different “destabilizing” inputs?
Hi Andreas! This is such an amazingly rich question, thank you! In many ways, it mirrors the previous question you asked on the Architect State and implementation. I have tried to answer this part of it in my latest central banking piece!
Thank you! I've commented further on that post (Part IV). This is great thinking (and explaining), and I appreciate you sharing your considerable effort and insight!
Hey, great read as always. Thanks for dedicating another Sunday to demystifying the PBoC's unqiue error handling. Your insights are spot on, as usual.
Thanks for taking the time to read 🤓
Thank you for this analysis! As usual, a clear-eyed systemic evaluation.
It does raise a question about whether desirable structural reinforcement and stability is equally compatible with a less authoritarian political system. Is a drift toward inequality and resultant regulatory capture intrinsic in all societies that aspire toward individual self-determination as a societal value? Piketty’s work seems to suggest this, but it is only a piece of a larger systemic analysis.
There are examples in Europe of third-way systems that seem to strike a better balance than the US, but it is unclear how one could incentivize a (peaceful) shift towards that balancing point for the US, given it’s current reality as a starting point. The game theory involved is sufficiently high-dimensional that the existence of even a piecewise-stable pathway can reasonably be questioned. And given the inordinate weighting of the US on the world economy (eg. exorbitant privilege of the dollar), that is destabilizing not only locally, but worldwide.
Do you have thoughts on assessing and engineeering stability not only on systems at a fixed moment in time, but also smooth systemic transitions resulting from different “destabilizing” inputs?
Hi Andreas! This is such an amazingly rich question, thank you! In many ways, it mirrors the previous question you asked on the Architect State and implementation. I have tried to answer this part of it in my latest central banking piece!
Thank you! I've commented further on that post (Part IV). This is great thinking (and explaining), and I appreciate you sharing your considerable effort and insight!