# kaal:claim:3402701-023

**Claim.** Determining what fraction of a currency is hot money is necessary for efficient defense of its stability, because the reserve requirement follows from that ratio rather than from a blanket full-backing rule.

**Type.** condition  **Support.** argued

**Source quote.**

> Therefore determining the fraction of a currency that is hot money is necessary for efficient defense of its stability

**From.** Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, *Stable Cryptocurrencies - First Order Principles* (2019), 3.1.2.3 Hot Money Ratio, page 21

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

**Verify.** sha256 of source PDF `72ed2581b4cac2bd18a5b2640be959487a3cbc34c86ab5e5664924bcdb53c8e0` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20et%20al.%20-%202019%20-%20Stable%20Cryptocurrencies%20-%20First%20Order%20Principles.pdf

**Topics.** economics

**Keywords.** hot-money-ratio, reserves, efficiency, peg-defense

**Related claims.**

- extended_by: https://wulfkaal.github.io/claims/3782216-032

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