Enabling Lonergan’s Economics as a Stable Evolutionary Strategy
Implementing Lonegan’s rules of crossover flows, namely establishing equilibrium between the basic circuit and the surplus circuit, has proved problematic since the inception of the idea. FreeBank is a blockchain based currency system designed to balance these two macroeconomic circuits as an evolutionary stable strategy. This is accomplished by using the complimentary Nash equilibria at the microeconomic level. The FreeBank system is fully decentralized and ‘trustless’, meaning no central authority is required to enforce any rules or issue currency. Using FreeBank, the rules of the basic circuit and the surplus circuit operate as natural law, being the optimal expression of game theory. Contracting parties accrue maximal return (as motivated by self-interest) when implementing these laws. Economic stability and high productivity are a sustainable outcome within this context, because crossover flows at the macroeconomic level are balanced.
Download the paper: Lonergan_and_FreeBank–2018-03-20.pdf