… it is critical to account for indirect in addition to direct social costs and benefits when ranking monetary architectures.
… the costs and benefits we consider point to an important role of central bank digital currency in an optimal monetary architecture unless pass-through funding is necessary to stabilise capital investment and very costly.
… the interest rate on CBDC should differ from zero and from the rate on reserves.
From the text:
Notes: The dark grey area represents the efficiency advantage of CBDC needed to make it less costly than a two-tier system with optimum reserve holdings. The light grey area displays the same object but based on actual US reserve holdings rather than model-implied optimal ones. These distributions allow for pass-through costs and tax distortions, quantified by assuming taxing households causes deadweight burdens of 25% per tax dollar. The distributions are based on two million realisations.
Human beings have their personal models of the world. These models are wrong and sometimes very wrong, leaving people with the impression that they have no choice, are being excluded, etc. The authors argue that successful psychotherapies and -therapists all use similar methods to help clients change and correct their models, opening new perspectives for them. In the book the authors systematize this argument.
They emphasize errors that humans make when mistaking models for reality—errors due to inadequate generalization, deletion, or distortion—and they use the language and tools from linguistics (transformational grammar)—distinguishing between the deep structure and the surface structure of sentences—to provide a toolkit for psychotherapists to help identify and correct these errors. Essentially, the therapist and the client are meant to identify the errors in the client’s model by insisting on well-formed sentences.
This quote is from the end of ch. 3:
This set, the set of sentences which are well formed in therapy and acceptable to us as therapists, are sentences which:
(1) Are well formed in English, and
(2) Contain no transformational deletions or unexplored deletions in the portion of the model in which the client experiences no choice.
(3) Contain no nominalization (process -> event).
(4) Contain no words or phrases lacking referential indices.
(5) Contain no verbs incompletely specified.
(6) Contain no unexplored presuppositions in the portion of the model in which the client experiences no choice.
(7) Contain no sentences which violate the semantic conditions of well-formedness.