kaal:claim:3402701-035

Transparency is not an unqualified good for monetary policy: a currency only partially backed by reserves can be arbitraged by a Soros-style shorting strategy much more easily when the quantity of reserves is public.

For instance, a currency partially backed by reserves can be successfully arbitraged by Soros' shorting strategy much easier if the quantity of reserves is known

Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies - First Order Principles (2019), 3.4.2 Communication Design, p. 26
https://ssrn.com/abstract=3402701 · source PDF

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

• partial reserve backing
• reserve quantities publicly known

failuresupport: arguedfailure: transparency-enabled-peg-attackfamily: trigger-design-failuredisclosureconsensus-and-securitytokenomics

• supersedes kaal:claim:3396522-002 Monetary policy making for fiat currencies largely lacks transparency, and that opacity prevents markets from ...

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