Preface: From Disillusionment to Design

I’m writing this as one person, not as an institution. I have no research staff, no policy mandate, and no vested interest beyond the simple conviction that our current economic operating system is broken. For years I’ve watched governments and central banks respond to crisis after crisis with the same blunt instruments — more debt, more liquidity, more moral hazard. We’ve built an economy that grows richer on paper while hollowing out the foundations of real prosperity.

I’m not opposed to intervention in principle. I’m opposed to arbitrary intervention — to human discretion that drifts with politics and fear. The most damaging failures of modern economics have not been technical but behavioural: incentives to postpone pain, to disguise inflation, to inflate assets instead of wages.

This paper proposes an alternative — a framework I call Algorithmic Monetary Policy (AMP). It’s not a cryptocurrency, nor a utopian decentralised fantasy. It’s an applied system for embedding discipline, transparency, and adaptability directly into the machinery of money creation. In essence, AMP seeks to automate honesty in monetary governance.

It’s a working prototype, not a finished product. But even a prototype can illuminate what a credible future might look like — one where monetary growth reflects the pulse of the real economy, not the moods of committees or the temptations of electoral cycles.

Part I – The Problem and the Philosophy

1. The Age of Soft Money

Since the end of the Bretton Woods gold exchange system in 1971, global monetary policy has operated on faith. We moved from a world of convertibility to one of credibility — from discipline anchored in a physical asset to discipline anchored in human promises.

For a while, it worked. The early decades of fiat management saw impressive stability. But as political time horizons shortened and debt became the lubricant of growth, discretion turned from flexibility into addiction. Each crisis invited a new round of intervention — each intervention widened inequality, weakened real signals, and inflated asset markets far beyond fundamentals.

The result is a paradoxical economy: technologically advanced but institutionally decayed, financially liquid but socially brittle. Central banks have become the high priests of a secular religion whose rituals few citizens understand but whose consequence...

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