So, essentially, we can use these metrics that are easy to generate from the blockchain to determine the demand for the currency. We can control the increase in money supply through controlling the block reward for miners. Transaction fees could be used as a tax to take money out, or maybe there are other ways.
A good argument for targeting NGDP, or velocity (or whatever you want to call it) is that it's pretty simple to measure on a blockchain. Doing that with a traditional currency would be much more prone to error.
Just need the maths to do that. Should be a fairly simple formula to create a currency who's supply responds to demand to enable even more stable (or slightly inflating) prices than good fiat currencies.
Instead of measuring & targeting price inflation to promote growth, we can measure & target growth with the aim of low price inflation.
Right. Instead of looking for the stats we can't get, we should be looking at the stats we can get and figuring out how we can use them to make something that works better than if we ignored them.
So, really, that's what I'm interested in too. The stats we can get from the block chain aren't exactly the NGDP, or aren't exactly the velocity of money, or whatever, But they are what we can get, and if we're to do any better than we've done they're what we have to start with.
I'm no economist, and I don't know what to assume or do about them, but surely they are related to figures that economists have studied? Maybe not perfectly, but enough for some broad empirical rules under reasonable assumptions about those relationships, about how to respond to them to make things better than they'd be if we simply ignored them?
'Cause if we can't do better than ignoring them what's this conversation about in the first place?