Problem 1: Inflationary Pressure

As we all know, inflation consists of two parts: Supply push and Demand pull. Altogether, it means that the money supply is in imbalance, and so is the amount of goods and services circulating in the economy.

But there is a solution! If someone develops an automated mechanism that would monitor the current volume of the market for all goods and services. Then more money should be issued only when there is an increase in the volume of the real market.

Problem 2: Lack of elasticity in money supply during an economic crisis

Economy does not grow all the time, and we in 2008, and then 2020 witnessed how easily it can reduce by a significant degree. What do governments do in such cases? They issue even more money to “support” the economy, while what should be done is absolutely opposite.

How is it possible to reduce the money supply once the economy is losing its power? The solution is simple: develop a physical mechanism that would destroy excess money supply and return a proportional share of a reserve that supports the money market.

And you, dear forum users, have you ever thought about such opportunities in this economy? Do you think that it is possible to overcome inflation with these solutions? We are waiting for your reply!