{
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 "@id": "https://wulfkaal.github.io/entities/central-banking",
 "identifier": "kaal:entity:central-banking",
 "name": "Central banking",
 "termCode": "central-banking",
 "inDefinedTermSet": {
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 "author": {
  "@type": "Person",
  "name": "Wulf A. Kaal",
  "identifier": "https://orcid.org/0000-0003-0757-275X"
 },
 "dateModified": "2026-07-29",
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 "subjectOf": [
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3249860-006",
   "identifier": "kaal:claim:3249860-006",
   "text": "In decentralized systems the functions previously performed by policy designers, central bankers, and economists in centralized markets are taken over by the token designer for the respective token economy.",
   "abstract": "Whereas policy designers, central bankers, and economists previously coordinated market design and economic regulations in centralized systems, these functions are taken over by the token designer for the respective token economy.",
   "citation": "Wulf A. Kaal, Crypto Economics - The Top 100 Token Models Compared (2018). SSRN: https://ssrn.com/abstract=3249860",
   "datePublished": "2018",
   "claim_type": "mechanism",
   "confidence": "asserted",
   "is_failure_mode": false,
   "scope_conditions": [],
   "source_pdf_sha256": "72b13f11002ba26206cd53e74c324b913d1830c642bfa024da6bac0d3af3a7b0",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3249860-007",
   "identifier": "kaal:claim:3249860-007",
   "text": "The democratization of monetary policy in token economies creates a serious problem, because token designers lack the qualifications and institutional functions that centralized central banking distributes across multiple institutions and their staff.",
   "abstract": "This creates a serious problem for many token economies as the designers lack the qualifications and functions that are",
   "citation": "Wulf A. Kaal, Crypto Economics - The Top 100 Token Models Compared (2018). SSRN: https://ssrn.com/abstract=3249860",
   "datePublished": "2018",
   "claim_type": "failure",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "token economies in which the designer sets supply, timing, and allocation"
   ],
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   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3396522-001",
   "identifier": "kaal:claim:3396522-001",
   "text": "The unfettered discretion of fiat monetary policy makers can lead to arbitrary outcomes, because the overall value and stability of any fiat currency is contingent on the fluctuations and successes of a country's economy rather than on any fixed valuation basis.",
   "abstract": "The unfettered discretion of policy makers can lead to arbitrary outcomes.8 The overall value and stability of any fiat currency is contingent on fluctuations and successes of a country's economy.9",
   "citation": "Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies (2019). SSRN: https://ssrn.com/abstract=3396522",
   "datePublished": "2019",
   "claim_type": "failure",
   "confidence": "argued",
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   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3402701-016",
   "identifier": "kaal:claim:3402701-016",
   "text": "Stable cryptocurrency bonds should be minted with a fixed expiration, following the practice of historical central banks, because fixed expiration makes price discovery more efficient.",
   "abstract": "We also recommend following the example of historical central banks, in minting bonds with fixed expiration so price discovery is more efficient",
   "citation": "Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies - First Order Principles (2019). SSRN: https://ssrn.com/abstract=3402701",
   "datePublished": "2019",
   "claim_type": "design",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [],
   "source_pdf_sha256": "72ed2581b4cac2bd18a5b2640be959487a3cbc34c86ab5e5664924bcdb53c8e0",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/6421319-002",
   "identifier": "kaal:claim:6421319-002",
   "text": "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.",
   "abstract": "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.",
   "citation": "Wulf A. Kaal, The Collapse of Scarcity Economics (2026). SSRN: https://ssrn.com/abstract=6421319",
   "datePublished": "2026",
   "claim_type": "mechanism",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "holds where AI production scales exponentially",
    "holds for central bank toolkits calibrated to constrained labor and limited output"
   ],
   "source_pdf_sha256": "0f4f68e56ee48bb8b2d73d3ab7fd96fa572e76c195694ffa740360704c1b172d",
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  }
 ],
 "description": "5 claims in the published works of Wulf A. Kaal carry the concept tag 'central-banking'. Derived node: a roster, not an adjudicated definition."
}