Hi everyone,
We know how monetary policy up until now has primarily involved quantitative easing and the cutting of interest rates.
We know that interest rates are now virtually zero (negative in some places) so has nowhere to move. The purpose of lowering interest rates is to stimulate spending in the economy.
While it is not the purpose of our project to do so, in the name of helping create financial stability - could paying people wages in real-time instead of on a monthly basis have an effect on the economy, by bringing forward spending decisions and increasing the velocity of money circulation?
Could this have any measurable impact on spending while avoiding the short sighted implications of penalising savers with interest rates?
I think that is certainly going to trigger people to spend most of the time, Money people like to budget because they follow know that it will take a full month before they will receive their salary again, paying in real time will encourage spending which in turn will boom the economy