Here’s a comment I wrote and posted several years ago. I’d like to add that I also see the Transition Job policy, along with a 0 rate policy, as what I call the ‘base case for analysis’ of a state currency:
“With ‘state currency’
There necessarily is,
Always has been,
Always will be,
A buffer stock policy.
Call that the MMT insight if you wish.
So it comes down to ‘pick one’-
2. Foreign Exchange
I pick employed/JG/ELR
As it works best as a buffer stock based on any/all criteria for a buffer stock.”