Treasury Growth Dividends

Abstract

I propose a specific use for the Treasury-issued ‘Digital Greenbacks’ (DGBs) and associated system of TreasuryDirect Digital Wallets that I have proposed elsewhere. I propose that these be issued as equitably distributed ‘Treasury Growth Dividends’ (TGDs) under normal circumstances, and deployed as a countercyclical policy lever under abnormal circumstances of deepening deflation or heightening inflation. This use of DGBs offers three highly attractive prospects: first, an equitable distribution of the proceeds of capital and labor investment nation-wide; second, a far more efficient, ‘leak-proof’ monetary policy transmission belt for countercyclical money modulation; and third, a mode of such countercyclical action that is ‘debt-free.’