What is Nash's Ideal Money?

[ulhaq]

Can someone explain what is John Nash's ideal money? From what I understand, the correct comparison of money should be to an internationally traded basket of commodities, eg, in proportion to their weights/trading. So instead of comparing the Euro to the dollar, it would make more sense to compare the Euro to this international basket of commodities, and the same for the dollar vs. the basket. The "ideal money" would have an inflation rate of zero, and there is no mathematical reason to target any other inflation rate.

Furthermore, Nash is not proposing that the ideal money would be pegged to this basket. Presumably it would be free floating and the price would be determined by supply and demand.

Have I got it right? And did Nash ever propose how the ideal money could be constructed? Eg, any authority, whether centralised or decentralised, would have practical decisions to make such as how much currency to produce, and when. I do not see how it could be practical to peg a currency to anything else, because supply/demand factors would always cause a change in the price of the currency (if that would be the way the currency is instantiated).

Lecture:
https://www.youtube.com/watch?v=Je22xKQekCk
Text of Lecture:
http://www.osce.org/bishkek/102073?download=true
Thoughts on the relationship of ideal money to bitcoin:
https://medium.com/@rextar4444/an-inquiry-into-john-nashs-proposal-for-ideal-money-f1551c46da31

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[Asoe kaya]

ideal nash or ideal money is stable money over long periods of time, the long term here is not in the short-range policy, it is only that there is no ideal inflation rate to choose and choose as the target but the ideal concept of course it is the zero rate for what is called inflation.

[traincarswreck]

Ideal Money, by Nash's definition, is achieved when we are all (nations) on the same value standard. This could be a hyperbitcoinization scenario where bitcoin is the global currency, or if all central banks value targeted the same target (ie pegged to bitcoin). 

On The Relationship Between Bitcoin and “Ideal Money”

From the Austrian view the idea of a well-managed money is worrisome because they view central banking as a counterproductive practice. Conversely, from the central banking point of view there is a need to prepare for, and buffer, economic crises.

George Selgin attests that a production factor based monetary policy would provide better money for a national economy than a CPI based method.

This suggests that there can be worse or better targets for a monetary policy.

Thus well-managed, whether or not it is even possible, could be seen as some theoretically optimized target (as if some future AI or omniscient being could organiz it for us).

A world in which centrally banked money is optimally managed is comparable to a world in which bitcoin is effectively global legal tender, and a world in which all central banks value stabilize versus bitcoin.

Each result achieves the goal of the proposal Ideal Money.

[crawlcontrol]

most interested topic @bt.

[hv_]

There are many 'ideals'. But they all live in a fictional/ theoretical world.

Real world instance is BSV