Monetary Framework
How certain forms of capital function during financial stress.
How certain forms of capital function during financial stress.
This section examines forms of capital that serve a protective role rather than a growth role. Gold, collateral decisions, and certain borrowing choices function differently from traditional investments.
These assets are not primarily designed to maximize returns. They exist to preserve flexibility during stress, liquidity shortages, or obligation pressure.
Understanding the role of contingency capital reduces misuse and clarifies when stability matters more than expansion.
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Examines why household gold functions as contingency capital rather than as a growth investment.
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Explores why the lowest interest rate is not always the safest borrowing decision.
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Outlines a structured approach to choosing which assets to use first during liquidity pressure.
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Analyzes how policy instruments can shift away from their original purpose over time.