Paper 2022/1379
Zero-Knowledge Optimal Monetary Policy under Stochastic Dominance
Abstract
Optimal simple rules for the monetary policy of the first stochastically dominant crypto-currency are derived in a Dynamic Stochastic General Equilibrium (DSGE) model, in order to provide optimal responses to changes in inflation, output, and other sources of uncertainty. The optimal monetary policy stochastically dominates all the previous crypto-currencies, thus the efficient portfolio is to go long on the stochastically dominant crypto-currency: a strategy-proof arbitrage featuring a higher Omega ratio with higher expected returns, inducing an investment-efficient Nash equilibrium over the crypto-market. Zero-knowledge proofs of the monetary policy are committed on the blockchain: an implementation is provided.
Note: Implementation available at: https://github.com/Calctopia-OpenSource/cothority/tree/zkmonpolicy
Metadata
- Available format(s)
-
PDF
- Category
- Implementation
- Publication info
- Preprint.
- Keywords
- optimal monetary policy optimal simple rules stochastic dominance stochastic calculus DSGE modelstrategy-proof Nash
- Contact author(s)
- david @ calctopia com
- History
- 2022-10-14: approved
- 2022-10-12: received
- See all versions
- Short URL
- https://ia.cr/2022/1379
- License
-
CC BY
BibTeX
@misc{cryptoeprint:2022/1379,
author = {David Cerezo Sánchez},
title = {Zero-Knowledge Optimal Monetary Policy under Stochastic Dominance},
howpublished = {Cryptology {ePrint} Archive, Paper 2022/1379},
year = {2022},
url = {https://eprint.iacr.org/2022/1379}
}
