Alexander Lipton | Monetary Circuit Model, Cross-Border Payments, and Ouroboros Supply Chain in Times of Uncertainty
The talk starts with a quick exposition of the modern monetary circuit model (MMCT), considered an integral part of the general dynamic input-output model. Then, it analyzes money creation by the banking system and highlights central banks’ role as an anchor that keeps the financial system together. Particular emphasis is placed on interactions among different systems and foreign exchange.
Second, the monetary system’s pain points and frictions are discussed, and it is argued that distributed ledger technology (DLT) can remove some of these frictions. The most recent developments, including central bank digital currencies (CBDCs), stablecoins (SCs), and digital trade coins (DTCs), and their potential applications are reviewed. DeFi (Decentralized Finance), including Automated Market Makers (AMM), is covered. It is shown how AMMs can reorganize forex trading and market-making by proposing a cross-settlement mechanism for digital assets on interoperable blockchains capable of handling CBDCs, SCs, and DTCs.
Third, Digital twins (DTs)—virtual models that mirror physical assets, systems, or processes—are discussed in the context of supply chains (SC). It is argued that SCs have two key enablers: DLT and Artificial Intelligence (AI). Together, these technologies unlock new economic opportunities in tomorrow’s interconnected, data-driven SCs. The promise of DTCs for the smooth running of such SCs is emphasized.
The talk explains the mathematics, economics, and technology behind the above developments and elaborates on their pros and cons.
Details:
Time: 12:00 pm - 1:00 pm PT
Location: Gates Computer Science Building, Room 119, 353 Jane Stanford Way, CA 94503
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