# kaal:claim:6421319-002

**Claim.** Monetary policy instruments become ceremonial under AI driven production, because central banks inject liquidity on schedules calibrated for scarcity economies while production compounds exponentially and money supply grows only linearly.

**Type.** mechanism  **Support.** argued

**Holds when.**

- holds where AI production scales exponentially
- holds for central bank toolkits calibrated to constrained labor and limited output

**Source quote.**

> Central banks inject liquidity on schedules calibrated for scarcity economies—quarterly adjustments, annual targets, multi-year policy frameworks. Against AI production scaling, these instruments become ceremonial.

**From.** Wulf A. Kaal, *The Collapse of Scarcity Economics* (2026), I.A. The Supersonic Metaphor and Its Analytical Precision, page 4

**Cite as.** Wulf A. Kaal, The Collapse of Scarcity Economics (2026). SSRN: https://ssrn.com/abstract=6421319

**Verify.** sha256 of source PDF `0f4f68e56ee48bb8b2d73d3ab7fd96fa572e76c195694ffa740360704c1b172d` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202026%20-%20The%20Collapse%20of%20Scarcity%20Economics.pdf

**Failure mode.** Ceremonial Monetary Instruments  (family: rule-obsolescence-and-ossification)

**Topics.** tokenomics, systemic-risk, institutional-design

**Keywords.** monetary-policy, central-banking, exponential-production, institutional-obsolescence

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