stablecoin

[4meta5]

why

the treasury will have significant capital, a subset of which could be locked such that stablecoin assets are issued against it (overcollateralized)

what

how would the stablecoin maintain its peg and how is monetary policy handled?

• alternating rule weighting (like Taylor Rule, inflation targeting, fixed exchange rate targeting, nominal income targeting, etc.)
• interesting recent paper

how

council curates a mapping from conditions to rules and adjusts the mapping according to the changing state of the economy => the determined conditions of the economy determine how the rules are weighted to determine monetary policy in practice