The New Financial Model is a proposed macroeconomic framework that introduces two new concepts: New Financial Tool, based on the concept of Future Money (FM), and New Universal Pension System. The New Financial Tool is designed to help governments, central banks, and financial markets manage aggregate demand, support economic growth and employment, strengthen financial stability, and respond more effectively to slow growth, high interest rates, inflation, stagflation, and economic crises. The New Universal Pension System aims to provide universal old-age financial security.
Paper 1 examines historical and contemporary consumption and saving behaviour, reviews existing approaches to managing periods of low and high economic growth, and discusses key ideas in Keynesian economics that provide the foundation for the New Financial Model.
Paper 2 introduces the New Financial Model, including the concepts of Future Money, the New Financial Tool, the New Universal Pension System, and the macroeconomic framework.
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