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The author Jp Koning
Jp Koning
Working in the bowels of the finance industry. Blogging about monetary phenomena is my side gig.

JP Koning: Moneyness

Moneyness is an economics blog by JP Koning about economics, money and finance. He adds an unique perspective to money-related issues, and explains everything very clearly, this combination sets him apart.

A decentralized version of MIT’s Billion Prices Project

Balaji Srinivasan, an angel investor, wants to kick start an updated version of MIT's Billion Prices Project. He will invest $100,000 in the project that best envisions how to create a publicly-available decentralized inflation dashboard, one that relies on scraped data from retailer websites.A truly global inflation dashboard would be the next coinmarketcap. It'd be bigger than that, in fact.So we're offering a little prize to build one. https://t.co/OtZJS8FRWA— Balaji Srinivasan (@balajis)...

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The afghani could split into two (and other possibilities for Afghanistan’s currency)

The new Governor of the DAB, Abdul Qahir Idrees, is introduced to staff.  [Source][Source]Last week I made the case that the Afghanistan's currency, the Afghan afghani, might hyperinflate. In this post I'm going to take a different tack. In a chaotic economy, the afghani—or at least some version of the afghani—may be one of the country's more reliable elements. I'm going to look to several exotic currency scenarios including that of the 1990s Iraqi dinar, which split into an unstable Saddam...

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What happens to the Afghanistan central bank’s assets?

The Afghanistan story is a tragic one and I don't have much to add to it apart from my ability to read central bank financial statements and balance sheets. Here's a quick analysis of the balance sheet of Afghanistan's central bank, da Afghanistan Bank. And following that, I'll provide some thoughts on what this means for Afghanistan. As always, feel free to add your opinions and data in the comments section.Da Afghanistan Bank issues the Afghan afghani, the currency symbol of which is the...

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Stablecoin regulatory strategies

Critics of stablecoins often describe them as unregulated. But that's not accurate. Over the last few months I've been familiarizing myself with the various financial regulatory strategies stablecoin issuers have been adopting. I thought I'd share my findings in a blog post. Perhaps journalists, investors, and others will find this information useful. (For those not interested in stablecoins, I apologize. This will mostly be gobbledygook to you.) I'll most definitely make a few mistakes in...

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Are the Bank of Canada’s bond purchases illegal?

Pierre Poilievre, Conservative MP for Carleton, alleges that the Bank of Canada's bond buying program contravenes the Bank's powers enunciated in the Bank of Canada Act.The unprecedented money printing the government is doing to fund its spending is not only causing an inflation tax, it is illegal under the Bank of Canada Act. pic.twitter.com/KDfJd3niPJ— pierrepoilievre (@PierrePoilievre) July 20, 2021 Allegations that the Bank of Canada has broken the law should be taken very serious. They...

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The dollar isn’t a meme

"Currencies are not memes that only have value because governments say they do," writes Brendan Greeley for the Financial Times. I agree with him. The dollar-as-meme claim is often made by cryptocurrency enthusiasts. That this idea would emanate from the cryptocurrency community makes sense, since cryptocurrency prices are a purely meme-driven phenomenon. There is no cryptocurrency for which this is more apparent than Dogecoin, a cryptocurrency started as a joke and sustained by shiba inu...

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Those 70s ACH payments

Here is Facebook's David Marcus, who has been involved in rolling out Facebook's much-touted Libra/Novi/Diem payments system:I often make the parallel between money and communication networks. Unfortunately money still moves at the pace of the early 70s (ACH), and for the most part at the same price. Unacceptable. https://t.co/beNCtCD3To— David Marcus (@davidmarcus) July 9, 2021 By ACH, Marcus is referring to automated clearinghouse payments. If you want to pay your phone bill, the payment...

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There are two kinds of people who label bitcoin a ponzi

There are two kinds of people who label bitcoin a ponzi. The first group is made up of salty nocoiners who launch the word ponzi as an insult. These people disliked bitcoin and/or bitcoiners pretty much from the get-go. They criticize it at every chance they get. The second group uses the word ponzi in a neutral, or analytic sense. They aren't describing bitcoin as a ponzi in order to insult bitcoin, but in the same way that a biologist would describe a certain mosquito as belonging to the...

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A short and lukewarm defence of anti-money laundering standards

These days it seems that everyone is a critic of anti-money laundering rules. In this post I want to try and defend our current approach to anti-money laundering.I'm writing from the perspective of an outsider. That is, I'm not a regulator. Nor am I a member of the growing anti-money laundering industry. Mine is a lukewarm defence. I'm not terribly wedded to my views.First, a quick definition. What I mean by anti-money laundering rules are the set of standards that banks and other financial...

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Why do ransomware gangs like bitcoin? It’s the censorship resistance

A new type of crime has recently emerged: big-ticket repeatable ransomware. Bitcoin is the chosen payments method for ransomware gangs. But these gangs don't use bitcoin because it is anonymous. They've chosen it because it is censorship-resistant.Here's a quick illustration of how ransomware works. A university's servers are encrypted by a ransomware operator. Common victims also include corporations, hospitals, or police departments. Only a payment of, say, $1.14 million in bitcoins will...

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