kaal:claim:3402701-017

Reserves, not bonds, are the necessary mechanism for currency instability caused by hot money, that is money frequently moved between institutions or currencies to maximize gain.

Source quote, verbatim

Reserves are necessary to address the instability of a currency due to hot money

From

Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies - First Order Principles (2019), 3.1.2.2 Reserves, p. 18
https://ssrn.com/abstract=3402701 · source PDF

Cite as

Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies - First Order Principles (2019). SSRN: https://ssrn.com/abstract=3402701

Holds when

instability driven by hot money flows

Classification

conditionsupport: arguedinstitutional-design

Verify

The quote above is an exact substring of the source PDF, whose sha256 is 72ed2581b4cac2bd18a5b2640be959487a3cbc34c86ab5e5664924bcdb53c8e0. Extraction method: pdf-text-layer.
Attestation record: colloquium/attestations/9658710a208a1385...json
Verify the binding yourself: curl -s https://wulfkaal.github.io/claims/3402701-017.md | sha256sum