The current economic and financial tension in Europe is the product of an imperfect monetary environment in a system of asymmetric variables without the benefit of monetary autonomy and an automatic adjustment mechanism in the form of the exchange rate. This impedes the matching of supply and demand and thus prevents the efficient allocation of market resources.
The Distributed Liquidity (DL) model proposes a new and unconventional instrument of monetary policy to counterbalance the rigidity caused by the absence of exchange rates, to create a real economy, to reward virtuous countries, to help countries in difficulty, to neutralize localized deflationary pressure, to permanently accelerate the development of the entire Eurozone, and to stabilize capitalistic economic cycles using a long-term anticyclical mechanism able to create the economic conditions to pursue and complete the process of European integration.
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